Collections Are Works of Art That Have Been Excluded from the Definition

question 20

Multiple Choice

Collections are works of art that have been excluded from the definition of capital assets. Which of the following statements is NOT a criterion which must be met before works of art qualify as collections under Canadian accounting standards?

• A) It must be possible to establish a useful life for the works and an appropriate amortization period.
• B) They are held for public exhibition, education, or research.
• C) They are protected, cared for, and preserved.
• D) They are subject to organizational policies that require any proceeds from their sale to be used to acquire other items for the collection, or for the direct care of the existing collection.

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Definitions:

Nobel Peace Prize

An international award given annually to an individual, group, or organization for outstanding contributions to peace, established by the will of Alfred Nobel in 1895.

Monetary Award

A financial compensation or reward given, often as a result of a legal verdict or settlement.

Rational

Refers to decision-making that is based on logic and reason, often assuming that individuals choose the option with the greatest personal benefit.

Free Money

Resources or funds received without the requirement for repayment, often perceived as grants or gifts.