Why bad debts written off considered as non cash adjust in the cash flow statement?

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1078467

2026-03-30 07:30

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The cash flow statement as the name suggest only recognizes transactions that involve the movement of cash. eg. cash/cheque receipts, payments

Bad debts written off does not involve any movement of cash. You neigther receive cash nor pay cash... therefore, it is an non-cash adjustment


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