Jaenicke and Glazer (1992)suggest an Alternative Approach to the One

question 35

Multiple Choice

Jaenicke and Glazer (1992) suggest an alternative approach to the one in AAS 29 for disclosures by museums within a US context.The proposal is that:

• A) Museums should present a summary by classes of items held in the collection that shows the cost of items held, any purchases and the inflow of cash from sales of items from the collection and any grants received.
• B) Museums should present a schedule of changes in the number of items in the collection, reconciling the beginning and ending figures. The dollar figures for total current-period purchases, contributions and sales of collection items should also be disclosed.
• C) Museums should present a schedule of the nature and type of the heritage asset held and a summary of the cost to maintain the collection in its current condition. Disclosures about the amounts received from the sale of items and grants received should be provided as well as a statement of the number of items purchased and their cost.
• D) Museums should present a summary statement showing how grants received and the proceeds from items sold during the period were allocated to the purchase of additional items and the maintenance of the existing collection. Amounts spent on administration and other overheads should be separately detailed to the extent that they are material.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.

Mountain Dew

A popular citrus-flavored carbonated soft drink produced by PepsiCo.

Price

The money measure forecasted, demanded, or given in fulfillment of something.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting its perceived value.