Non-cash items are items that do not directly affect cash flow, such as depreciation expenses, provision for bad debts, and amortization of intangible assets. These items are important to consider when evaluating a company's financial health, as they can affect profitability and cash flow in the long term. Therefore, option D is the best choice as it accurately describes non-cash items.

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Non-Cash Items Are

Question 269

Multiple Choice

Non-cash items are:

A) The credit sales of a ﬁrm.
B) The accounts payable of a ﬁrm.
C) Expenses incurred for the purchase of intangible ﬁxed 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.

Correct Answer: