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

Question

Jasmine Baldwin

Business

10 January, 17:51

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

+1

Answers (1)

Know the Answer?

Drew · 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.