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Give examples of non cash transactions in respect of assets/liabilities.?

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/10
Deleted user
by Deleted user

Assets : Depreciation, Amortisation, Deferred Tax Asset, etc. Liabilities: Accrued Expenses, Provision, Deferret Tax Liabilities, etc.

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

  1. Depletion

  2. Depreciation

  3. Amortization

  4. Bad debt expenses
  5. Accrued expenses

 

Sara Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

Depreciation,amortization,stock issued and debt financing..e.t.c

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

agree with most of the answers provided

Mohamed Tarek Wagdy MBA CTP
by Mohamed Tarek Wagdy MBA CTP , Head Of Treasury , Medaf Investment

Depreciation, Amortization, Provision, Accrued Expenses, Deffered Revenue

Maricris Palma
by Maricris Palma , ComBen Associate , Matutum Meat Packing Corporation

sales on account

Mohamed Ashour
by Mohamed Ashour , Accounting Manager , Al Riyadiah Medical Company

1- Deprecations 

2- Amortization 

4- Accrued Expenses

 

5- Accrued Revenues

6-Profit (loss) for unrealized investments

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Acquisition of Fixed Assets in exchange of Bonds/Debentures/Shares

Conversion of Preference Shares to Equity Shares. 

Conversion of Debentures to Equity Shares

Good well, copt write, patent,

Faraz Shiwani
by Faraz Shiwani , Managing Partner , Shiwani Traders

A non-cash item is an entry on an income statement or cash flow statment correlating to expenses that are essentially just accounting entries rather than actual movements of cash.

How it works/Example:

Depreciation and amortization are the two most common examples of noncash items. They are a standard feature of income statements, whose purpose is to account for all of a company’s expenses in a given period. Though the company’s assets do lose value over time (hence the need to record depreciation), the company does not actually write a check to “Depreciation.” It is just an accounting entry to reflect the reduction in the value of the company’s assets.

Why it Matters:

It’s crucial to remember to separate non-cash items from cash items in financial analysis. The presence of non-cash items are precisely why cash flow is not the same as net income, which includes transactions that did not involve actual transfers of money. Knowing when to add back the deductions for non-cash items helps the analyst understand how much cash a company actually generated (or didn’t generate). The statement of cash flows helps with this.

Deleted user
by Deleted user

converting debt to equity, buying or selling fixed assets for something other than cash (for example, stock), obtaining a building or other item by gift, and exchanging noncash assets or liabilities for other noncash assets or liabilities.Depreciation and Amortization ,Bad Debt Expense ,Accrued Expenses  and Accrued revenue

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