Non Cash Expenses

When expenses occurred without any cash flow then those expenses are termed as “Non Cash Expenses”. For example, asset depreciation; depreciation is an automated & fix expenses charged to be every month with a particular depreciate percentage but for this no cash outflow occurred at the particular period as it occurred at the time of asset purchase.

Some other non cash expenses are doubtful debt expenses, discount expenses, bad debt expenses, warranty provision expenses etc.

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