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Capital Consumption Allowance (CCA): Definition & Formula

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of these is a capital good?

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1. What is measured by accounting depreciation?

2. What is the capital consumption allowance?

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About This Quiz & Worksheet

Capital consumption allowance (CCA) will be the subject of this quiz/worksheet combo. Test questions will cover key areas such as capital goods and accounting depreciation.

Quiz & Worksheet Goals

Multiple-choice questions will cover the following:

  • The definition of the CCA
  • What occurs if gross investment spending exceeds the CCA
  • A capital good

Skills Practiced

  • Defining key concepts - make sure you can accurately define the capital consumption allowance (CCA)
  • Making connections - use your understanding of accounting depreciation and capital goods
  • Information recall - access the knowledge you've gained regarding an example of a capital good

Additional Learning

For those who want to learn more about capital goods, you can read the lesson named Capital Consumption Allowance (CCA): Definition & Formula. Here are some of the major points of the lesson:

  • Difference between consumer goods and capital goods
  • Accounting depreciation of a pizza oven
  • Contributors to economic depreciation
  • Example calculation of net investment spending
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