Register now or log in to join your professional community.
The answer will be depreciation ??????????????????
Depreciation.................................................................
Depreciation. This is a non cash concept to provide for wear and tear of assets.
It's quite obvious, DEPRECIATION
Depreciation Definition: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence.
Depreciation is a provision for replacement of capital equipment in the business considering the life of the equipment and wear n tear. This is like an insurance or a cushion for future.
Correct is
Depreciation is non cash expense, and so its not a cash outflow or inflow.
depreciation is not a cash outflow
