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Which of the following is a non cash expense?

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Question added by Wasim khan wazir , Finance Specialist , Mott Macdonald
Date Posted: 2015/12/26
Sufiyan Raza
by Sufiyan Raza , Senior Document Controller , Olsen & Partners Interiors LLC

Depreciation is a non cash expense because it does not involve outflow of cash instead it will be less from assets net book value or historic cost depending upon company depreciation method. it will appear in Income statement as an expense and in cashflow statement it will be added back to profits

Haitham  Sherif
by Haitham Sherif , مدير مالي , الصرح للسياحة والسفر

A. Depreciation ////////////////

 

 

 

 

 

Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option A is the right answer.

Ahmed Adel Mohammed Azkoul
by Ahmed Adel Mohammed Azkoul , Finance Manager , Arabian Fasteners Factory Engineering & Fabrication Services

Depreciation is non cash expense

احمد العاصي
by احمد العاصي , مراجع , arab consultant

Depreciation is non cash because it not involve a cash payment. As a result, the statement of cash flows prepared under the indirect method will add depreciation expense to the amount of net income.

Umair Javed
by Umair Javed , Deputy Manager Accounts & payables , Fazal Group Of Companies

Depreciation is non cash flow and it also does not require any cash outflow only the decrease the book value of asset.

Muhammad Mustafa Khan
by Muhammad Mustafa Khan , Accountant General , COTTON EMPIRE TEXTILES L.L.C.

Answer is

Depreciation for sure....

هيثم ناجى
by هيثم ناجى , محاسب اول , الفيوم لصناعة السكر

depreciation is non cash expense  the option A is true

Muhammad Saeed
by Muhammad Saeed , Experienced Associate Auditor (Secondment) , Deloitte and Touche (Middle East)

Non-cash item is Depreciation.

Amr AbuOsba
by Amr AbuOsba , Finance Manager , Alkhorayef Petroleum Company

A noncash expense is an expense that is reported on the income statement of the current accounting period, but there was no related cash payment during the period. A common example of a noncash expense is depreciation.

Ramy Mohammed Mohammed Elbana
by Ramy Mohammed Mohammed Elbana , Accounting Section Head , Andalusia Polyclinics

Depreciation expense so we deduct it from the net profit on the accrual basis when preparing cash flows statement

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