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During the Year, a Not-For-Profit Art Gallery Acquired a Number

question 44

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During the year, a not-for-profit art gallery acquired a number of pieces for its collection. Which of the following choices for reporting the acquisitions is not in accordance with the CICA Handbook?


Definitions:

Voucher System

An accounting system that involves preparing and using vouchers—documents that authorize and detail the payment of a liability to a supplier.

Cash Receipts

The total amount of cash and cash equivalents received by a company during a given period, including sales, refunds, and other cash inflows.

Liabilities

Financial obligations or debts that a company owes to others, which are expected to be settled through the transfer of assets, provision of services, or other economic benefits.

Income Statement Account

A financial account that shows the company's revenues, expenses, and net income over a specific period.

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