Question

The museum of natural history is deciding whether to record its recent purchase of rare artifacts as an asset on its financial statements. which of the following criteria must exist for the purchase of rare artifacts to be classified as a collection and thus provide the museum of natural history the option to not record the purchase of rare artifacts as an asset on the financial statements:

a. the rare artifacts will be held for public exhibition, education, or research in furtherance of public service rather than financial gain.
b. the rare artifacts will be protected, kept unencumbered, cared for, and preserved.
c. the rare artifacts will be subject to an organizational policy that requires the proceeds of any rare artifacts sold be used to acquire other items for collection, to be used for the direct care of existing collections, or both.
d. all of the above criteria must exist.

Answer 1

For the museum of natural history to classify its purchase of rare artifacts as a collection, it must meet all criteria: public exhibition for education and research, proper care and preservation of the artifacts, and reinvestment of sales proceeds into the collection or direct care of it.

Step-by-step explanation:

The museum must fulfill all of the above criteria for the purchase of rare artifacts to be classified as a collection and thus have the option not to record the purchase of rare artifacts as an asset on its financial statements. First, it is important that the rare artifacts will be held for public exhibition, education, or research rather than for financial gain. Second, there is an expectation that the artifacts will be protected, kept unencumbered, cared for, and preserved.

Lastly, an organizational policy should stipulate that proceeds from any sales of the artifacts would be used to acquire other items for the collection, or towards the direct care of existing collections. The intention is to ensure that the museum's artifacts serve the public interest and are managed responsibly in line with cultural heritage preservation and educational objectives.