bdavi77962

Intuition tells me that cash flow is cash flow (one true amount) regardless of the amount of depreciation you have since it has nothing to do with cash. So I was just wondering why physical cash in the bank is affected by whether or not you have depreciation. I'm sorry but your post still does not align this intuition with this accounting practice.

saulherman Wrote:
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> The different i that of course the cash amounts
> WILL BE different.....
>
> when we deduct depreciation it decreases our TAX
> OUTFLOW which is a cash outflow.
>
> so if we have depreciation vs not having any of
> course there is going to be a difference in the
> cash outflows