Final answer:
It is true that museums and religious organizations are required to capitalize and report on their balance sheets assets like works of art and historical items if they are held for public exhibition. These items are valuable assets that could provide service returns or future sale value.
Step-by-step explanation:
The statement that museums and religious organizations must capitalize and report in their balance sheets assets such as works of art, historical treasures, historical archives, and similar collectible items if they are held for public inspection is True. These items are considered tangible assets, much like collectibles that provide returns through service or potential sale at a higher price in the future. According to accounting standards, these assets must be recognized and reported on the balance sheet. While they may not provide a higher-than-average rate of return over a sustained period, they still represent value for the organizations.
Artworks, historical treasures, and collectibles become more than just aesthetic items; for museums and religious institutions, they are valuable assets. Their inclusion in the balance sheet reflects the potential service they provide as well as their potential to appreciate in value, thereby influencing the entire art market and perceptions of what qualifies as art.