Question

You have learned about a noncash expense in a previous lesson, what was it? HINT: it relates to the company's use of its equipment

Answer 1

Non cash expenses are the charges incurred by a company that educes the earnings and not the cash flows of a company.

Step-by-step explanation:

A non-cash charge is defined as the accounting expenses or the write down expenses which does not involve a cash payment. The depletion, depreciation, stock-based compensation, amortization and the asset impairments are the common non cash charges which reduces the earnings but not the cash flows.

Non-cash expenses relates to he use of a company's equipment and tools which is used to run the company and which encounters depreciation and a degradation in its value or cost. Thus they are considered as the non cash expenses of a company.