n NISM Certifications
XV NISM Series XV
Medium

Which of the following is considered a non-cash expense?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Interest expense

  2. Depreciation

    Correct answer

  3. C

    Dividend payment

  4. D

    Rent expense

Why this is the answer

Depreciation reduces accounting profit but does not involve cash outflow, hence is a non-cash expense. Interest, rent, and dividend payments involve cash.

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