12. Drye Township has received a donation of a rare painting worth $1,000,000. For Drye's government-wide financial statements, three criteria must be met before Drye can opt not to recognize the painting as an asset. Which of the following is not one of the three criteria? The painting is held for public exhibition, education, or research in furtherance of public service, rather than financial gain. II. The painting is scheduled to be sold immediately at auction. III. The painting is protected, kept unencumbered, cared for, and preserved. a) Item 1 is not one of the three criteria. b) Item 2 is not one of the three criteria c) Item 3 is not one of the three criteria. d) All three items are required criteria. e) None of the three items are required criteria. 13. Which of the following statements regarding Management's Discussion and Analysis is true? a) MD&A is required only for Proprietary Fund Financial Statements b) MD&A is reported in the statistical section of the annual report. c) MD&A is required for comprehensive annual financial reports. d) MD&A for state and local government financial statements must include an analysis of potential, untapped revenue sources. e) MD&A is an optional inclusion for state and local government financial statements 14. Which one of the following is a criterion for identifying a primary government? a) it has an appointed board of directors. b) it is fiscally dependent. c) it is a local government. d) it has a separately elected governing board. e) it must prepare financial statements 15. In accruing patient charges for the current month, which one of the following accounts should a hospital credit? a) Accounts Payable. b) Deferred Revenue. c) Public Support Revenue. d) Patient Service Revenues e) Accounts Receivable. 16. Unconditional promises to transfer cash or other resources to an entity in a voluntary nonreciprocal transaction is the GAAP definition of a) Miscellaneous revenues. b) Contributions. c) Unconditional promises to give. d) Exchange transactions e) Pledges