A Donated Collection Is Not Required to Be Capitalized

question 41

Multiple Choice

A donated collection is not required to be capitalized.If a government decides not to capitalize them,how will they be accounted for at the time of the donation?

• A) Debit revenue, credit expense/expenditure
• B) Debit expense/expenditure, credit revenue
• C) Debit collections, credit revenue
• D) Debit collections, credit cash

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Definitions:

Injunction

A judicial order that prohibits a party from performing a specific act or mandates a party to perform a specific act in order to prevent harm or injustice.

Pay Damages

The act of compensating someone for loss or injury typically determined by a court of law.

Strict Liability

Refers to a legal doctrine in tort law where a party is held responsible for damages or harm caused without the need for proof of negligence or fault.

Fireworks

Explosive devices used typically for entertainment, producing visual and auditory effects through combustion.