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What are some examples of a noncash expense?

Typically, an expense means that the company had a cash outflow. However, for noncash expenses, there is no cash outflow.

Some common examples include depreciation & amortization and stock-based compensation. As you can see in the examples below, when we record depreciation or stock-based compensation, there is no cash outflow at the time or in the future (i.e. a payable is not recorded).

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