Non-cash assets are expected to produce cash over time but the amount of cash they eventually produce could be higher or lower than the values at which the assets are carried on the books.

Question

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Non-cash assets, such as investments or property, are carried on the books at their original cost or fair value. However, the amount of cash they eventually produce can fluctuate based on market conditions or other factors, leading to potential differences between the carrying value and the actual cash generated.

Non-Cash Assets Are Expected to Produce Cash Over Time but the Amount