When calculating the amount of depreciation expense taken during the year for the Statement of Cash Flows, it is necessary to take into account accumulated depreciation for any equipment that was sold

When the Statement of cash flows is prepared as per the Indirect method, only the depreciation expense for the current year is added back to the net income in order to arrive at the Net cash provided by operating activities for the current year.

The Depreciation expense is a non cash expense and is added back to the net income figure to arrive at Net cash provided by operating activities.

Since the cash flow statement is prepared for a period of a year, only that part of the depreciation expense which pertains to the current year is included in calculating the amount of depreciation expense for the year. The accumulated depreciation for an equipment that was sold during the year is not included in calculating the amount of depreciation expense taken during the year.

Thus the statement is False.

When calculating the amount of depreciation expense taken during the year for the Statement of Cash Flows, it is not necessary to take into account accumulated depreciation for any equipment that was sold.