Question

The Branson Museum of American History, a not-for-profit organization, has a collection of artifacts from the ancient Aztec civilization. Which of the following museum policies is important in determining whether or not to capitalize the collection?

A) Artifacts are protected and cared for so that they will be preserved.
B) Proceeds from the sale of any artifact will be used to acquire other items for the collection.
C) The artifacts are held for public exhibition, education and research purposes, not for financial gain.
D) All of the above.

Answer 1

The museum policy that is important in determining whether or not to capitalize the collection is option C: the artifacts are held for public exhibition, education and research purposes, not for financial gain.

Step-by-step explanation:

The museum policy that is important in determining whether or not to capitalize the collection is Option C: The artifacts are held for public exhibition, education and research purposes, not for financial gain. This policy indicates that the museum's primary focus is on sharing the artifacts with the public for educational and research purposes, rather than using them as a source of profit. By capitalizing the collection, it would imply that the artifacts are being treated as a financial asset, which goes against the museum's mission as a not-for-profit organization.