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 78 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
Gracias!


bdobbins

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

For a complete list of videos, visit our video library