Since Amortization and Other Non-Cash Charges Represent a Scheduled Write-Off

question 115

True/False

Since amortization and other non-cash charges represent a scheduled write-off of an earlier cash outflow, they should NOT be included in the cash budget.

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Definitions:

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Production Function

A mathematical expression that describes the relationship between input factors of production (like labor and capital) and the output of goods or services.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or economy.