Which of the following are non-cash expenses on the income statement? Amortization expense Income tax expense Depreciation expense Interest expense

Question

Business

Guillermo Crane

11 June, 14:42

Which of the following are non-cash expenses on the income statement? Amortization expense Income tax expense Depreciation expense Interest expense

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Answers (1)

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Cash Doyle · Answer 1

Depreciation and amortization are non cash expenses.

Explanation:

Amortization expense is a non cash expense because amortization is an accounting technique used to lower the book value of a loan or intangible asset and since there are no payments or cash involved this is a non cash expense.

Depreciation is also a non cash expense as it is accounting technique used to lower the book value of fixed assets therefore no cash is used in this transaction and it is a non cash expense.

Income tax expense and interest expense are not non cash expenses as cash is involved in these transactions.