Noncash items refer to:
A) fixed expenses.
B) inventory items purchased using credit.
C) the ownership of intangible assets such as patents.
D) expenses that do not directly affect cash flows.
E) sales that are made using store credit.

Question

Quizplus · Accepted Answer

Noncash items are expenses, revenues, gains, or losses that do not involve actual cash transactions. These transactions do not directly affect cash flows, hence they are noncash items. Examples of noncash items include depreciation expenses, amortization expenses, and stock-based compensation.

Noncash Items Refer To