Which of the following transactions is least likel
Which of the following transactions is least likely to increase a company’s reported cash from operations?
A.Securitizing accounts receivable
B.Delaying payments made to suppliers
C.Using short-term debt to reduce an existing account payable
参考解答
Ans:C.
Using short-term debt to pay down payables will have no effect on the cash from operations. Payables will decrease which decreases cash from operations, but short-term debt will increase, which is an offsetting increase in cash from operations, resulting in no net effect on cash from operations.
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