Misclassified as maintenance expense


Equipment acquisitions that are misclassified as maintenance expense most likely would be detected by an internal control procedure that provides for:

A. Investigation of variances within a formal budgeting system.

B. Segregation of duties of employees in the accounts payable department.

C. Independent verification of invoices for disbursements recorded as equipment acquisitions.

D. Authorization by the board of directors of significant equipment acquisitions.

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Accounting Basics: Misclassified as maintenance expense
Reference No:- TGS093606

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