When an Asset Is Purchased (Or Disposed Of) at a Time

question 236

True/False

When an asset is purchased (or disposed of) at a time other than the beginning or the end of an accounting period, depreciation is recorded for part of a year so that the year of purchase or the year of disposal is charged with its share of the asset's depreciation.

---

Definitions:

Significance Level

The probability of rejecting the null hypothesis when it is true, used as a criterion for testing statistical significance.

Degrees of Freedom

The tally of individual figures or quantities which might be designated to a statistical distribution.

F-value

A value used in statistical testing to determine if the variances between two populations are significantly different, often arising in ANOVA (analysis of variance) settings.

Analysis of Variance

A statistical method used to compare the means of three or more samples, to determine if at least one of the sample means significantly differs from the others.