A Donated Collection Is Not Required to Be Capitalized

question 113

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

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Definitions:

Financial Resources

Assets in the form of money or other valuables that an individual or organization can utilize to carry out its functions or objectives.

Labour Costs

The total sum of all compensation that a business must pay to its employees for a set period or on a given project.

Environmental Pollution

The contamination of the natural environment causing adverse effects on living beings and the ecosystem.

Incorporation Practices

Incorporation practices involve legal and procedural steps required to form and register a company as a separate legal entity, according to specific jurisdictional regulations.