Accountants Do Not Depreciate Investment in Net Working Capital Because

question 75

Multiple Choice

Accountants do not depreciate investment in net working capital because

• A)it is not a cash flow.
• B)it is recovered during or at the end of the project; thus it is not a depreciating asset.
• C)it is a sunk cost.
• D)working capital appears on the balance sheet, not the income statement.

Comprehend how marginal and average tax rates operate and their implications on taxable income.

Recognize the impact of tax policies on different income groups, including the economic behaviors it incentivizes.

Identify major sources of federal revenue and understand the budget allocation to different expenditures.

Understand the historical and current tax rates, and predict the effects of future changes in tax legislation.