Since amortization and other non-cash charges represent a scheduled write-off of an earlier cash outflow, they should NOT be included in the cash budget.

Name: Since amortization and other non-cash charges represent a scheduled write-off of an earlier cash outflow, they should NOT be included in the cash budget.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Amortization and other non-cash charges do not affect cash flow and are not actual cash outflows, therefore they should not be included in a cash budget.

Since Amortization and Other Non-Cash Charges Represent a Scheduled Write-Off