Depreciation expense is a non-cash expense that has no effect on cash.

Name: Depreciation expense is a non-cash expense that has no effect on cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense that represents the decrease in the value of a fixed asset over time. It is recorded in the income statement but does not involve any cash payments or receipts. Therefore, it does not affect the cash flow of a business.

Depreciation Expense Is a Non-Cash Expense That Has No Effect