Angle Company's expected sales for April are $27,600. Information about other budgeted expenses is presented below. $\begin{array}{ll}
\text { Budgeted } & \text { Expenses per Month } \
\text { Wages } & \$ 2,000 \
\text { Advertising } & 1,680 \
\text { Depreciation } & 1,440 \
\text { Rent } & 2,560 \
\text { Other } & 5 \% \text { of sales }
\end{array}$ is a noncash expense.

Question

Quizplus · Accepted Answer

Depreciation is a noncash expense because it represents the allocation of the cost of an asset over its useful life, rather than an actual cash outflow.

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