Which of the following objectives in a property accounting application system relates to the process of periodic comparison of physical assets with the accounting records?
A) Provide for appropriate depreciation and/or amortization calculations
B) Maintain adequate records that identify assets with description, cost, and physical location
C) Provide for reevaluation for insurance and replacement cost purposes
D) Provide management with reports for planning and controlling individual asset items

Question

Quizplus · Accepted Answer

Maintaining adequate records that identify assets with description, cost, and physical location is essential for comparing physical assets with accounting records. This process is also known as the physical inventory, and it helps ensure that the financial statements accurately reflect the value of the company's assets. Options A, C, and D relate to other objectives in a property accounting application system.

Which of the Following Objectives in a Property Accounting Application