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How does depreciation affect cash flow statement?

In: Business Accounting and Bookkeeping [Edit categories]

Answer:

Depreciation does not effect cash flow statement as depreciation is not a cash expense rather it is just a treatement to dispose off the value of asset according to useful life of asset and the cost of asset is already shown in cash flow statement when asset is purchased.

First answer by Jabirshah. Last edit by Jabirshah. Contributor trust: 182 [recommend contributor ]. Question popularity: 0 [recommend question].

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Is depreciation on the cash flow statement?
Depreciation is added to net income in cash flow statement (indirect method).
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What are the categories of cash flows that appear on a statement of cash flows?
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How does depreciation affect cash flow statement?

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