Which one of the following about Fixed Asset registration is incorrect?
Group of answer choices
When we record a purchase of PPE through a bill, the asset is automatically registered under 'Fixed Assets'.
For the purpose of the assignment, depreciation should always be recorded through 'fixed assets' and not a manual journal
When we are asked to set a 'start date' for the Fixed Asset function before being able to register any asset, we should choose the start date of the relevant financial year
For each asset we wish to register, we need to set its purchase date, depreciation method and choose the relevant accumulated depreciation account
The statement "For the purpose of the assignment, depreciation should always be recorded through 'fixed assets' and not a manual journal" is incorrect. Depreciation does not necessarily have to be recorded solely through the 'fixed assets' sub-ledger; it can also be recorded through a manual journal entry, depending on the accounting software being used. The recording of depreciation can be done through a manual journal entry, adjusting the relevant accumulated depreciation account directly.
