This topic contains a solution. Click here to go to the answer

Author Question: A not-for-profit museum holds a valuable collection of art works. On reviewing the museum's ... (Read 222 times)

melina_rosy

  • Hero Member
  • *****
  • Posts: 531
A not-for-profit museum holds a valuable collection of art works. On reviewing the museum's financial statements, a new trustee notices that the statement of financial position contains no line item for inventory of art works.
 
  He is told by the accountant that the museum has never taken an inventory because it would cost too much. What are the accounting requirements regarding capitalization of the art works?
   a. All collections of art works must be capitalized, regardless of the circumstances.
   b. Collections of art works are not required to be capitalized under any circumstances.
   c. If collections of art works meet certain criteria (such as being protected and preserved), they must be capitalized.
   d. If collections of art works meet certain criteria (such as being protected and preserved), the museum has an option either to capitalize or not capitalize them.

Question 2

Net income is shown on the work sheet as a(n)
 a. debit in the Balance Sheet columns.
   b. credit in the Balance Sheet columns.
   c. debit and a credit in the Balance Sheet columns.
   d. adjustment to owner's equity.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

hollysheppard095

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

d

Answer to Question 2

b




melina_rosy

  • Member
  • Posts: 531
Reply 2 on: Jul 5, 2018
Wow, this really help


tuate

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

For a complete list of videos, visit our video library