When accounting for assets, which assets require internal controls?

The correct answer is comprehensive because it encompasses all types of assets that require internal controls to ensure proper oversight and management. Cash or cash equivalents are highly susceptible to theft and misappropriation, making controls essential to safeguard these assets. Fixed assets, such as property and equipment, also need tracking and protection, as they represent significant investments and can be prone to loss or misuse.

Resale merchandise must have internal controls to manage inventory effectively, prevent loss from theft, and ensure that records accurately reflect stock levels. Consumable supplies, which can include items used in operations and services, require internal controls to prevent waste and ensure accountability in their usage and replenishment.

Lastly, securities, such as stocks and bonds, are financial assets that require careful management to prevent fraud or loss. They are typically significant value items in an organization’s portfolio and necessitate strict controls.

Control processes for all these categories help ensure financial integrity, accurate reporting, and compliance with legal and regulatory obligations. Hence, all mentioned assets in option D are critical and require robust internal controls.