How does this pseudocode for Tree traversals work?

My algorithms textbook has a pseudocode implementation of how to list the names of all the files in a tree directory. Let's say you have this tree directory right here. Does the pseudocode below know to print the names of the three files in the first child folder and then print the three items in the second folder, or does the code have to be called once for each path?

ParentFolder
ChildFolder1  -  ChildFolder2
file1,file2,file3  -  file4,file5,file6

private void listAll( int depth )
{
	printName( depth ); // Print the name of the object
		if( isDirectory( ) )
 			for each file c in this directory (for each child)
				c.listAll( depth + 1 );
} 

public void listAll( )
{
	listAll( 0 );
}

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