Non-cash items refer to expenses recorded on the income statement that do not involve an actual cash outflow, such as depreciation, amortization, and provisions that affect the profit and loss statement but do not result in a cash movement during the period they are recorded.

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Non-Cash Items Are

Question 293

Multiple Choice

Non-cash items are:

A) The credit sales of a firm.
B) The accounts payable of a firm.
C) Expenses incurred for the purchase of intangible fixed assets.
D) Expenses charged against revenues that do not directly affect cash flow.
E) All accounts on the statement of financial position other than cash on hand.

Correct Answer: