wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Depreciation is a classic example of a .

A
cash expense
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
cash income
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
non-cash expense
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
non-cash income
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is C non-cash expense
The most common example of a non-cash expense is depreciation. Depreciation expense is used to match better the expense of a long-term asset to the revenue it generates., where the cost of an asset is spread out over time even though the cash expense occurred all at once.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Indirect Method
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon