The 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, thus impacting tax payments and cash flow.

The Are Two Main Reasons Why We Need to Deal