Depreciation is a non-cash expenses.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A True
Depreciation means fall in the value of assets. The net result of an asset's depreciation is that sooner or later the asset will become useless. Depreciation does not result in outflow of cash and hence, it is a non-cash expenses.

Suggest Corrections

Similar questions

Non-cash expenses like depreciation, depletion & amortization expense are _______ to net profit before tax under indirect method.

Depreciation expenses are _________ to net profit while calculating cash flow from operating activities.

Depreciation is a non-cash expense which should not be provided for in the profit and loss account. Comment.

Join BYJU'S Learning Program