Scholarships can be viewed as a non-cash expense to college athletic programs. explain.

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09-09-2022
Social Studies

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Scholarships can be viewed as a non-cash expense to college athletic programs. explain.

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tripatsingh039 tripatsingh039 · Answer 1 · 2022-09-14T13:21:39+02:00

The expenses that are listed on the income statement but do not really involve a cash transaction are known as non-cash expenses. Depreciation is one such noncash expense. There is no cash flow when depreciation is debited in the income statement, yet the net profit is reduced.

A write-down or accounting expense that does not entail a cash payment is referred to as a non-cash charge. The usual non-cash expenses of depreciation, amortization, depletion, stock-based compensation, and asset impairments lower profitability but do not affect cash flows.

Scholarships are considered a form of non-cash expenses because they are not in the form of cash.

Depreciation is the permanent and continuing loss of a depreciable fixed asset's book value as a result of use, the passage of time, obsolescence, the termination of legal rights, or any other reason. Cash is not expended as a result of depreciation. It is an intangible expense.

Learn more about noncash expenses here:

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