Question

depreciation is non-cash and non operating expense which is to be provided for whether there are profit/loses​

Answer 1

Answer:

False.

Depreciation is non cash expense but it is charged to profit and loss account as operating expense which is used for the business purpose . therefore the given statement is false

Explanation:

Depreciation is one of the few expenses for which there is no outgoing cash flow. Cash is spent during the acquisition of the fixed asset, so there is no need to expend any more cash as part of the depreciation process unless the asset is being upgraded. So, depreciation is a non-cash component of operating expenses.