Works of art and historical treasures purchased by the general fund should be reported as:
A) I only.
B) II only.
C) Both I and II
D) Neither I nor II.

Question

Works of art and historical treasures purchased by the general fund should be reported as: 
A) I only. 
B) II only. 
C) Both I and II 
D) Neither I nor II.

Quizplus · Accepted Answer

I. As works of art and historical treasures are tangible assets and have long-term economic value, they should be recorded as capital assets and presented in the government-wide statement of net position. Therefore, they should be reported in the governmental activities column of the government-wide financial statements.
II. As these assets are considered non-current assets, they should be reported in the government-wide statement of net position as part of the non-current assets section, and not as expenditures of the current period in the government-wide statement of activities.

Works of Art and Historical Treasures Purchased by the General