A Museum Has Invested Substantial Funds for Its Collection in the Past

question 33

Essay

A museum has invested substantial funds for its collection in the past. During the year, the museum hired a new accountant, who decided that the collection should have been capitalized and amortized to operations. The accountant needs the approval of the treasurer to prepare the journal entries required to correct the previous financial statements.
Required:
You are the treasurer of this museum. Outline your response to the accountant.

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Definitions:

Accept Blame

Accepting accountability for an error or shortfall.

Apologize

To express regret or sorrow for having done wrong or caused inconvenience to someone, often as a way of seeking forgiveness.

Reduction In Workforce

A decrease in the number of employees within an organization, usually due to economic constraints or organizational restructuring.

Decrease In Sales

A situation where a company or a business experiences a reduction in the number of goods or services sold over a specific period.