Is bad debt expense a non cash item? 1.76K viewsAccounting0 Guest60 0 Comments Is the bad debt expense which is included in the income statement a cash or a non cash item and why? Should I take it off when I calculate the cash flow from operating activities? 1 AnswerActiveVotedNewestOldest 0 Guest60 Posted 0 Comments Yes, bad debt expenses are not cash items so they are excluded when you work out the cash from operating activities from example. Register or Login Search for: