Which of the following expenses has no effect on the cash flow of a firm?
A)salaries expense
B)interest expense
C)depreciation expense
D)cost of goods sold

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense, meaning it does not involve any cash outflow from the firm. It is simply an accounting measure to spread the cost of an asset over its useful life. Therefore, it does not affect the cash flow of a firm.

Which of the Following Expenses Has No Effect on the Cash