If a Government Elects to Capitalize Certain Works of Art

question 38

Multiple Choice

If a government elects to capitalize certain works of art and similar assets, which of the following statement is true relative to depreciation on those assets?

• A)Donated assets cannot be depreciated.
• B)All of the capitalized assets must be depreciated.
• C)All exhaustible works of art and similar assets must be depreciated.
• D)The government may elect to omit all depreciation.

---

Definitions:

Interaction Effect

A situation in statistical analysis where the effect of one independent variable on the dependent variable is different at different levels of another independent variable.

Main Effect

The effect of an independent variable on a dependent variable, isolated from other variables in an experimental study.

Simple Effect

The effect of one independent variable at a particular level of another independent variable in a factorial design.

Factorial Research

Factorial research involves experiments that study the effects of more than one independent variable at a time on a dependent variable.