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BikerBob

08/30/14 8:29 AM

#94276 RE: traderfjp #94275

NON CASH EXPENSES is NOT MONEY.

Transactions in non cash expense accounts meet the textbook definition of expense: Generally, they decrease owner’s equity by using up assets. They do not represent actual cash flow, however. The most familiar non cash accounts are for depreciation expenses, but others include amortization and bad debt expenses.

Non cash expenses are used on the income statement for the purpose of reducing reported earnings, thereby lowering taxes.