Peter Company's expected sales for April are $27,600.Other information follows: Which operating expense is a noncash expense?
A)Advertising
B)Rent
C)Depreciation
D)Wages

Question

Peter Company's expected sales for April are $27,600.Other information follows:  Which operating expense is a noncash expense?
A)Advertising 
B)Rent 
C)Depreciation 
D)Wages

Quizplus · Accepted Answer

Depreciation is a noncash expense, as it reflects the decrease in value of an asset over time and does not involve an actual cash outflow. Advertising, rent, and wages all involve actual cash expenditures.

Peter Company's Expected Sales for April Are $27,600