MB-310 Manage Fixed Assets Practice Question

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

• ✗

  Inventory to fixed asset journal

  Why it's wrong here

  The Inventory to fixed asset journal is specifically designed to transfer items from inventory to fixed assets. It is used when a company purchases items into inventory and later capitalizes them. For a direct purchase of a server that is immediately placed in service as a fixed asset, this journal is not appropriate and would bypass the standard acquisition process.

• ✗

  General journal

  Why it's wrong here

  A General journal can post to ledger accounts, but it does not update the fixed asset subledger. If you use a General journal to record an acquisition, the fixed asset value model will not reflect the acquisition, and depreciation will not be calculated on the new asset. The fixed asset module requires its own journal to maintain the integration between the subledger and the general ledger.

• ✗

  Project management and accounting journal

  Why it's wrong here

  Project management and accounting journals are used to record costs related to projects, not to acquire fixed assets directly. While a project can capitalize costs to a fixed asset, that process uses a different mechanism and is not the standard way to record a simple asset acquisition. Using this journal would not correctly update the fixed asset value model for a standalone purchase.

• ✓

  Fixed asset journal

  Why this is correct

  The Fixed asset journal is used to record acquisitions, depreciation, and other fixed asset transactions. When you post an acquisition in this journal, the system updates the fixed asset value model and posts the corresponding ledger entries, debiting the fixed asset account and crediting the offset account (such as Accounts payable). This ensures the asset's net book value and the general ledger remain in sync.