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

question 52

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) They 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) They 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) They 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) They 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.
• E) None of the given answers.

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Definitions:

Organizational Buyers

Businesses, governments, or institutions that purchase goods or services for use in the production of other goods and services, for resale, or for the organization’s operations.

Reseller Market

A market wherein goods or services are purchased for the purpose of resale rather than personal use.

Government Market

A market segment where the main customer is any government entity, purchasing products or services for public service.

Organizational Buyer

An organization that purchases goods or services for its own use or for further production, including companies, governments, and institutions, not individual consumers.