Museum and other inexhaustible collections held by a private college may or may not be capitalized and recorded in the accounts of a private college.

Question

Quizplus · Accepted Answer

It depends on the nature of the collection and the accounting policies of the college, whether or not they choose to capitalize and record it on their books. However, generally speaking, assets with an indefinite useful life, such as museum collections, are usually capitalized and recorded as a noncurrent asset on the balance sheet.

Museum and Other Inexhaustible Collections Held by a Private College