Question

Non-Cash items are not recorded in _________. (Fill in the blank by choosing correct option)
a) Income and Expenditure
b) Receipts and Payments Accounts
c) Balance Sheet
d) Profit and Loss Account

Answer 1

reciept and payment
account

Answer 2

Answer:

The correct answer to the given question is option (b) receipts and payments account.

Explanation:

As is suggested by its name, non-cash items don't involve any kind of payment in cash, there may be payment but not directly in cash. This kind of item is listed on the income statements of a company.

The examples of non-cash items are:

1) depreciation

2) bad debt expense

3) amortization

4)depletion