How does e.cancel=true works in formclosing event?

private void Form1_FormClosing(object sender, FormClosingEventArgs e)
       {
           if(e.CloseReason==CloseReason.UserClosing)
           {
               e.Cancel = true; /* if it is true then it can be seen that the
                                 statements inside the formclosing methods runs
                                  twice(which causes the problem) before going to
                                  formclosed. when i set it to false then the problem
                                  gets resolved and y is that so */
               this.Hide();
               UpdateToken();
           }
       }