RE:Question for the BoardAccounting makes my head spin.
Investopedia has the following definition for non-cash earnings.
"A non-cash charge is a
write-down or accounting expense that does not involve a cash payment. They can represent meaningful changes to a company's financial standing, weighing on
earnings without affecting short-term capital in any way.
Depreciation,
amortization,
depletion,
stock-based compensation, and asset
impairments are common non-cash charges that reduce earnings but not
cash flows."
I think the last part might be the most important - follow the cash flow.