Noncash items refer to:
A) sales which are made on a credit basis.
B) inventory items purchased using credit.
C) intangible assets such as patents.
D) expenses, like depreciation, which do not directly affect cash flows.
E) administrative expenses.

Question

Quizplus · Accepted Answer

Noncash items are generally expenses which do not impact cash flow, such as depreciation, amortization, and stock-based compensation. These items are recorded on the income statement but do not involve the exchange of cash.

Noncash Items Refer To