non-cash expense
- noun
- Specialized
:
gasto no monetario
- When calculating net income, it's important to account for every non-cash expense.
Examples
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Depreciation is a common non-cash expense that reduces taxable income.
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The financial statement lists several non-cash expenses for the year.
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A non-cash expense can affect your profit margins.
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Many businesses report non-cash expenses on their financial statements.
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In accounting, depreciation is considered a non-cash expense because it does not involve an actual cash outflow.
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Amortization is a common type of non-cash expense that companies frequently report on their financial statements.
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When calculating earnings, businesses should account for non-cash expenses to get a clearer picture of their financial health.
Synonyms
Recorded in accounts but not paid or received in cash
How Cash
- Specialized
1
5.3
- Specialized
Surface Forms
Morphology
The phrase is transparently built from 'non-cash' (not involving cash) + 'expense' (a cost), so a learner who knows those constituents can infer it refers to an expense that does not involve an actual cash payment. While specific accounting examples (e.g., depreciation) may require domain knowledge, the core meaning is directly derivable and follows common negative-prefix + noun composition found across languages.
Etymology
Non-cash expense comes from business records where a cost is counted as an expense even though no money leaves the company, so the part non-cash means 'not paid in cash'. For example, when a machine slowly loses value companies record that loss as a non-cash expense even if they do not spend money that day, which is why the phrase means an expense shown in the books but 'not paid in cash'.