financial statements: Depreciation is a non-cash transaction related to already purchased equipment, therefore, it does not impact financial state jents Depreciation is more significant on cheaper machinery, which wears out sooner. Therefore, investment in more durable equipment is justified o As depreciation increases, net cash flow is reduced Depreciation is a non-cash expense that decreases tax liability by decreasing taxable income None of these answers is correct Which is most correct regarding impacts of depreciation on corporate financial statements: o Depreciation is a non-cash transaction related to already purchased equipment, therefore, it does not impact financial statements Depreciation is more significant on cheaper machinery, which wears out sooner. Therefore, investment in more durable equipment is justified o As depreciation increases, net cash flow is reduced O Depreciation is a non-cash expense that decreases tax liabilid by decreasing taxable income None of these answers is correct