Since depreciation is a non-cash charge it does not appear nor have an effect on the cash budget.

Question

Quizplus · Accepted Answer

While depreciation is a non-cash charge, it does have an effect on the cash budget. Depreciation is deducted from revenues to calculate net income, and net income affects the cash balance by influencing taxes payable, retained earnings, and dividends paid. In addition, depreciation might impact capital expenditures if the company uses it to calculate the depreciation expenses in the future.

Since Depreciation Is a Non-Cash Charge It Does Not Appear