There are two main reasons why we need to deal with depreciation.Which of the below is one of these reasons?
A)The gain but not the loss when a capital asset is disposed
B)The loss but not the gain when a capital asset is disposed
C)The tax flow implications from the OCF
D)The tax rate implications from the OCF

Question

Quizplus · Accepted Answer

Depreciation affects the operating cash flow (OCF) by reducing taxable income, which in turn impacts the tax flow implications.

There Are Two Main Reasons Why We Need to Deal