1)What does it mean when a transaction is non-cash? If it's non-cash, why do we even care about it? 2)A gain or loss on sale causes two adjustments to the cash flow statement

a.) Non cash transactions are those transactions which do not lead to inflow or outflow of cash.for eg depreciation of a fixed asset is a non cash item . The biggest benifit of non cash transactions is that they are deductible , and allows businesess to report a lower profit to tax authorities and they also do not lead to any net reduction in cash .

b.) The sale proceeds ( including gain or also ) from long term assets are reported under the head ' investing activity' while the gain or loss on their sale is reported under operating activity as a deduction from net income

c.) Finance market is also selling / buying at the right time to get into the most profitable position.In trading up , a person sells or buys something at a price which is higher than what he already possesses . the ability to sell at higher price is something which everyone desires in finance also , therefore definitely trading up relates to the study of finance .

d.) Businesess often make a provision for bad debts to cover the risk arising from non collection of money from debtors. However this provision shouldn't be made on total sales but on credit sales. Bad debts arises from credit sales and therefore credit sales should be the basis to calculate bad debts percentage .