Noncash items refer to:
A)the credit sales of a ﬁrm.
B)the trade payables of a ﬁrm.
C)the costs incurred for the purchase of intangible non-current 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.

Question

Quizplus · Accepted Answer

Noncash items are expenses that do not impact the cash flow of a business, such as depreciation, amortization, and bad debt provisions. They are recorded on the income statement to reflect the actual cost of doing business but do not require a cash outflow.

Noncash Items Refer To