Depreciation is a non-cash Expense booked in the Income Statement, which lowers Net Profit. When...

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Accounting

Depreciation is a non-cash Expense booked in the Income Statement, which lowers Net Profit. When you see Depreciation listed on an Income Statement...

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The effect is that Cash Flow is higher than Net Profit.

The effect is that Cash Flow is lower than Net Profit.

The effect is that Cash Flow is identical to Net Profit.

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