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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