Since depreciation expense is added back to net income in the operating section of an indirect method cash flow statement, if depreciation expense increases cash flows will similarly increase.

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Ivy Joy Cahayag · Accepted Answer

Final Answer : False, Explanation :  Depreciation expense is a non-cash expense, meaning it does not impact cash flows directly. Therefore, if depreciation expense increases, it will not result in a similar increase in cash flows.

Since depreciation expense is added back to net income in the operating section of an indirect method cash flow statement, if depreciation expense increases cash flows will similarly increase.

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