Cash disbursements may include all of the following EXCEPT
A) tax payments
B) rent payments
C) depreciation expense
D) fixed asset outlays

Question

Quizplus · Accepted Answer

Cash disbursements refer to the actual outflow of cash from a company. Tax payments (A), rent payments (B), and fixed asset outlays (D) all generally involve cash leaving the company. However, depreciation expense (C) is a non-cash expense that represents the allocation of the cost of a tangible asset over its useful life. Therefore, it does not involve an actual outflow of cash and is not considered a cash disbursement.

Cash Disbursements May Include All of the Following EXCEPT