Collections Are Works of Art That Have Been Excluded from the Definition

question 21

Multiple Choice

Collections are works of art that have been excluded from the definition of capital assets. Which of the following statements is NOT a criterion which must be met before works of art qualify as collections under Canadian accounting standards?

• A) It must be possible to establish a useful life for the works and an appropriate amortization period.
• B) The works are held for public exhibition, education and research.
• C) They are protected, cared for, and preserved.
• D) They are subject to organizational policies that require any proceeds from their sale to be used to acquire other items for the collection, or for the direct care of the existing collection.

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Definitions:

Arbitrator

A neutral third party who resolves disputes between two other parties, making decisions that are usually binding.

Unionization

The process of organizing the employees of a company into a labor union to negotiate wages, working conditions, and other employment terms.

Union-Management Negotiation

The process in which labor union representatives and company management discuss and agree on workplace conditions, wages, and policies.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputants come to a consensus on their own.