Native Art Museum, a Not-For-Profit Entity That Elects Not to Capitalize

question 38

Multiple Choice

Native Art Museum, a not-for-profit entity that elects not to capitalize its collection items, purchased for $10,000 a wonderful totem pole for display near the door of the museum. As a result of this transaction, which of the following entries should be made?

• A) Debit Collection items $10,000; Credit Cash $10,000.
• B) Debit Collection expense $10,000; Credit Cash $10,000.
• C) Debit Unrestricted net assets $10,000; Credit Cash $10,000.
• D) No entry is required.

---

Definitions:

Moral Treatment

An approach to mental health care in the 19th century that emphasized humane treatment, moral discipline, and the therapeutic value of work and leisure activities.

Philippe Pinel

A French physician renowned for his contributions to the humane treatment of the mentally ill in the late 18th and early 19th centuries.

Mental Hygiene

The practice of maintaining mental health through the prevention and treatment of mental disorders, as well as by promoting healthy lifestyles and environments.

Antisocial Personality

A disorder characterized by a pervasive pattern of disregard for, and violation of, the rights of others.