If a company uses special journals
a. it must have one for cash, receivables, and payables
b. it may have no more than four
c. the quantity and design depend on the needs of the company
d. the design must comply with the FASB requirements
Question 2
A not-for-profit museum owns a building and a large collection of art works. Both the building and the art works are capitalized on the entity's statement of financial position.
What is the general rule regarding depreciation of the building and the art works?
a. The building must be depreciated, but the art works cannot be depreciated.
b. Both the building and the art works must be depreciated.
c. Neither the building nor the art works can be depreciated.
d. The building must be depreciated, but the art works need not be depreciated if the collection meets the three criteria established by the FASB.
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