In accounting information systems, fixed-asset file management procedures are required for many activities. For which of the following activities are such procedures not required? Choose the best single exception.

Introduction / Context:
Fixed-asset accounting depends on accurate master data and well-controlled file management. From capitalization to retirement, organizations rely on standardized procedures to ensure that asset records (location, cost, depreciation, custody, and insurance values) remain correct. The question asks whether there is any listed activity that would not need fixed-asset file management procedures.

Given Data / Assumptions:

• Activities listed: physical inventory of assets, processing new purchases, and estimating fire insurance requirements.
• “Fixed-asset file management procedures” refers to policies and steps for creating, updating, reconciling, and reporting asset master records.
• We assume a typical computerized fixed-asset subledger integrated with the general ledger and risk/insurance schedules.

Concept / Approach:
All three activities inherently depend on current, accurate fixed-asset records. Physical inventory requires matching what exists on the floor to what resides in the master file. Purchase processing needs creation or update of master records (first cost, useful life, tag, location). Insurance estimation needs exposure data such as replacement cost, asset type, and location—all maintained within the asset files or derived from them. Therefore, procedures are needed for each activity, making “None of the above” the correct choice.

Step-by-Step Solution:

Verification / Alternative check:
Audit standards emphasize fixed-asset master file controls for existence (inventory), rights and obligations (purchase documentation), and valuation/insurance (exposure calculation). Each requires reliable file procedures.

Why Other Options Are Wrong:

• (a), (b), (c): Each activity needs accurate files; none is an exception.
• (d) “All of the above” suggests no procedures are required for any activity, which is incorrect.

Common Pitfalls:
Assuming insurance teams estimate independently; they still rely on asset records. Ignoring that physical inventory reconciles directly to the master file.

Final Answer:
None of the above