For a Government That Elects to Capitalize Its Works of Art

question 7

Multiple Choice

For a government that elects to capitalize its works of art and similar assets, the appropriate entry when receiving a contribution of a work of art in the government-wide financial statements is

• A)No entry is required for contributed assets.
• B)Debit Asset; Credit Revenues.
• C)Debit Asset; Credit Equity.
• D)Debit Expenditures; Credit Revenues.

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Definitions:

Economy Moves

The various shifts and changes in the economic activities and conditions within an economy over time.

Supply

The total amount of a specific good or service that is available to consumers at a particular price over a given period.

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity of the good demanded.

Equilibrium Quantity

The quantity of goods supplied is equal to the quantity of goods demanded at the market price.