The Effects of Depreciation on Cash Flow


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question 1 of 3

Which of the following is true of depreciation using MACRS?

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1. What is the formula for net working capital?

2. Where can authoritative rules for MACRS be found?

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About This Quiz & Worksheet

Using both the quiz and worksheet, see how much you know about the effects of depreciation on cash flow. The formula for net working capital and using MACRS are topics on the quiz.

Quiz & Worksheet Goals

Complete the quiz and worksheet to see how much you know about:

  • Where the authoritative rules for MACRS can be found
  • An advantage of high cash flow
  • The effect of depreciation on business finances
  • Formula for net working capital

Skills Practiced

  • Information recall - access the knowledge you have gained regarding the net working capital formula
  • Knowledge application - use your knowledge to identify the effect of depreciation on business finances
  • Reading comprehension - ensure that you pick out the most important details from the business lesson on depreciation

Additional Learning

In order to gain more knowledge about these effects, complete the lesson called The Effects of Depreciation on Cash Flow. This lesson is an effective tool for helping you go over more about:

  • The definition of cash flow
  • What MACRS stands for
  • Finding the book value