Question

True or false: The person who has custody of an asset should also account for the asset. A person who performs both duties will best know what the balance should be in the accounting records

Answer 1

It is FALSE that the person who has custody of an asset should also account for the asset.

What are asset custody and accounting for an asset?

Asset custody involves physical safety of an asset.  Accounting for an asset involves the maintenance of proper records in the accounting system.

These two accounting duties must be separated and assigned to two persons under the principle of separation of duties.

Thus, it is FALSE that the person who has custody of an asset should also account for the asset because of the attached knowledge of the asset's balance.

Learn more about separation of duties at https://brainly.com/question/504830