Asked by Martie Coleman on Jun 16, 2024
Verified
Which of the following is a noncash expense?
A) Depreciation
B) Operating costs
C) Income taxes
D) Cost of goods sold
Noncash Expense
Expenses recorded on the income statement not requiring actual cash outflow, such as depreciation and amortization.
Depreciation
The accounting practice of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value of the asset over time.
Operating Costs
Expenses related to the core functions of running a business, including manufacturing and service delivery.
- Understand the role of noncash expenses and their effect on financial statements.
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Learning Objectives
- Understand the role of noncash expenses and their effect on financial statements.
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