JKS, a nongovernmental not-for-profit art museum, has elected not to capitalize its permanent collections. In 2X11 a bronze statue was stolen. The statue was not recovered, and insurance proceeds of $35,000 were paid to JKS in 2X12. This transaction would be reported in: I. The statement of activities as permanently restricted revenues.; II. The statement of cash flows as cash flows from investing activities. a. Neither I nor II.

b. I only.

c. Both I and II.

d. II only.

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8 January, 10:25

JKS, a nongovernmental not-for-profit art museum, has elected not to capitalize its permanent collections. In 2X11 a bronze statue was stolen. The statue was not recovered, and insurance proceeds of $35,000 were paid to JKS in 2X12. This transaction would be reported in: I. The statement of activities as permanently restricted revenues.; II. The statement of cash flows as cash flows from investing activities. a. Neither I nor II.

b. I only.

c. Both I and II.

d. II only.

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Answers (1)

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Kadin Gallagher · Answer 1

I. The statement of activities as permanently restricted revenues.;

Explanation:

Permanently restricted items are the objects under the owner of a trustee which are received with restriction by the donor. Restriction states that

the donation must be maintained permanently and which may be used for financial gain for the trust.