Which of the following is an example of a noncash item reported in the income statement of a firm?
A)Taxes
B)Dividends
C)Interest
D)Depreciation
E)Net sales

Question

Quizplus · Accepted Answer

Depreciation is a noncash item that represents the decrease in value of a long-term asset over time. It is a necessary expense for businesses but does not involve any actual cash outflow. The other options listed all involve actual cash transactions.

Which of the Following Is an Example of a Noncash