What should accompany the receipt of new property?

• A. A warranty certificate and insurance documents
• B. An inventory adjustment form
• C. A receiving report, updated property records, and a hand receipt for assigned personnel if applicable
• D. A disposal authorization

Answer: (C)

Acquiring new property starts with establishing clear accountability from the moment it arrives. A receiving report captures the facts of the shipment—date, supplier, item description, quantity, serial numbers if applicable, and condition—creating the official record that the asset has been received. Updating the property records immediately places the item into the inventory, assigns it an asset tag or identifier, notes its location and custodian, and links it to the appropriate financial and accountability accounts. Providing a hand receipt to the person who will use or safeguard the asset formally transfers responsibility to that individual, ensuring there is a named custodian responsible for the property and a traceable record of who is in control of it. Together, these steps establish a complete, auditable trail from receipt through custody and usage, supporting accurate inventory and effective loss prevention.

Warranties and insurance documents, while useful for risk management, don’t establish custody or accountability. An inventory adjustment form is used to correct records after discrepancies, not to document new acquisitions. A disposal authorization is for removing assets from service, not for bringing new property into the system.