Non-Cash Charges Are Expenses That Involve an Actual Outlay of Cash

question 93

True/False

Non-cash charges are expenses that involve an actual outlay of cash during the period but are not deducted on the income statement.

---

Definitions:

Original Entry

The initial recording of a financial transaction in the accounting records or journal, marking the first stage in the accounting process.

Transaction Recording

The process of documenting all business transactions in the accounting records of an organization, following accounting principles.

Collusion

A secret agreement between two or more parties for a deceitful, illegal, or fraudulent purpose to deceive others.

Prescribed Controls

Specific procedures and policies implemented by a company to safeguard its assets, ensure accurate financial reporting, and comply with laws and regulations.