What affect does depreciation have on a companys cash account and its annual net cash flow? Well define annual net cash flow as the difference between the cash the company collected from its customers during the year and the cash it paid to operate the business during the year. Note, when I refer to cash paid to operate the business, I include amounts paid to employees, amounts paid to suppliers, expenditures on infrastructure, etc.

Group of answer choices

Depreciation causes both the cash account and net cash flow to decrease.

Depreciation causes the cash account to decrease but it has no effect on net cash flow.

Depreciation causes net cash flow to decrease but it has no effect on the cash account.

Depreciation has no effect on either the cash account or net cash flow.