Question

Why is it important for Fixed Asset Systems to keep track of the physical location of each asset to promote accountability?

A) Because knowing the physical location helps in determining the market value of the asset.
B) Because it simplifies the depreciation calculation for fixed assets.
C) Because it ensures that assets are not misplaced or lost, promoting accountability and preventing misuse.
D) Because physical location information is required for tax reporting purposes.

Answer 1

The physical location of assets is important for Fixed Asset Systems to promote accountability and prevent misuse. The correct answer is C).

Step-by-step explanation:

The correct answer is C) Because it ensures that assets are not misplaced or lost, promoting accountability and preventing misuse.

Fixed Asset Systems are designed to keep track of the physical location of each asset for several reasons. One important reason is to ensure that assets are not misplaced or lost, which promotes accountability and prevents misuse. By knowing the physical location of each asset, companies can easily track their assets and identify any discrepancies in their inventory.

For example, if a company has a fixed asset system in place and an asset goes missing, they can easily check the system to see the last known location of the asset and investigate further. This helps prevent theft and misuse of assets and promotes responsible asset management.