Final answer:
The fixed asset register is the best tool for verifying the proper GAAP recording of assets with useful lives greater than one year, as it contains detailed information about the asset's acquisition cost and depreciation. The correct answer is c) Fixed asset register.
Step-by-step explanation:
You asked which accounting record would be the best source of information to verify that a company has recorded all assets with useful lives greater than one year following GAAP (Generally Accepted Accounting Principles). The correct answer is c) Fixed asset register. The fixed asset register is a detailed record of a company's fixed assets, providing information about the purchase cost, date of acquisition, depreciation expense, accumulated depreciation, and the book value of the assets.
Reviewing the fixed asset register will allow you to see individual asset records, their cost, depreciation method, useful life, and accumulated depreciation, ensuring that assets are not expensed in the period they were purchased if their useful life extends beyond one year.
The trial balance and general ledger provide financial info, but may not include the detailed breakdown needed for this specific check. The income statement reports company's financial performance over a specific period and includes expenses, but does not provide the level of detail about the acquisition and depreciation of individual assets over time, which we need to ensure GAAP compliance.