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.
Was this answer helpful?
1
Similar Questions
Q1
Depreciation is a non-cash expenses.
View Solution
Q2
Depreciation is a non-cash expense.
View Solution
Q3
Non-cash expenses like depreciation, depletion & amortization expense are _______ to net profit before tax under indirect method.
View Solution
Q4
Depreciation expenses are _________ to net profit while calculating cash flow from operating activities.
View Solution
Q5
Depreciation expenses are to net profit while calculating cash flow from operating activities.