The First Year's Depreciation for Equipment Acquired in October by a Calendar-Year

question 78

True/False

The first year's depreciation for equipment acquired in October by a calendar-year business would be based on 1½ months if it was the only asset acquired that year.

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Definitions:

Net Working Capital

The difference between a company’s current assets and current liabilities, indicating its short-term financial health and ability to cover short-term liabilities.

JIT Inventory

JIT inventory, or Just-In-Time inventory, is a management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce stock levels.

Just in Time

The Just in Time (JIT) methodology is an inventory management strategy that aims to reduce waste and increase efficiency by receiving goods only as they are needed in the production process.

Suppliers

Entities or individuals that provide goods or services to other entities or individuals, typically within a business or manufacturing process.