St.Louis Company's expected sales for April are $27,600.Information about other budgeted expenses is presented below. $\begin{array}{lr}
\text { Budgeted } & \text { Expenses per Month } \
\hline \text { Wages } & \$ 2,000 \
\text { Advertising } & 1,680 \
\text { Depreciation } & 1,440 \
\text { Rent } & 2,560 \
\text { Other } & 5 \% \text { of sales }
\end{array}$ _____ is a noncash expense.
A)Advertising
B)Depreciation
C)Rent
D)All of these answers are correct

Question

St.Louis Company's expected sales for April are $27,600.Information about other budgeted expenses is presented below. $\begin{array}{lr}
\text { Budgeted } & \text { Expenses per Month } \
\hline  \text { Wages } & \$ 2,000 \
\text { Advertising } & 1,680 \
\text { Depreciation } & 1,440 \
\text { Rent } & 2,560 \
\text { Other } & 5 \% \text { of sales }
\end{array}$ _____ is a noncash expense.
A)Advertising
B)Depreciation
C)Rent
D)All of these answers are correct

Quizplus · Accepted Answer

Depreciation is a noncash expense because it represents the allocation of the cost of tangible assets over their useful lives, not an actual outlay of cash during the period.

StLouis Company's Expected Sales for April Are $27,600 _____ Is a Noncash Expense