Noncash Charge Or Expense
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Description
A charge against earnings - either an expense or a loss - that does not require a cash expenditure at or near the time of recognition. Thus, the charge reduces profit but does not affect cash flows (except, perhaps, for income tax payments). Examples are depreciation and the write-off of asset values because an asset has become impaired.
Concept Prerequisite
Wikipedia Reference
Learning Material
Covered in Topic(s)
| Plant & Intangible Assets |