Which one of the following is not reported in the income statement as as expense?
(A) Salaries
(B) Depreciation
(C) Rent
(D) dividend
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Answer:
b option may be
Explanation:
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Depreciation
The reason is that cash was expended during the acquisition of the underlying fixed asset; there is no further need to expend cash as part of the depreciation process, unless it is expended to upgrade the asset. Thus, depreciation is a non-cash component of operating expenses (as is also the case with amortization.
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