Amortization is a source of cash inflow because:
A) it is a tax-deductible noncash expense.
B) it supplies cash for future asset purchases.
C) it is a tax-deductible cash expense.
D) it is a taxable expense.

Question

Quizplus · Accepted Answer

Amortization is a noncash expense, meaning it does not require actual cash outflow. However, it is tax-deductible, which reduces the company's tax liability and increases the cash inflow available for other uses.

Amortization Is a Source of Cash Inflow Because