An analyst should most appropriately reclassify fi
An analyst should most appropriately reclassify financing cash outflows as operating cash outflow is a firm has:
A.financed its payables.
B.securitized receivables.
C.repurchased stock to offset dilution.
参考解答
4j8***101
2024-11-08 11:56:47
Ans:C.
Firms that give employee stock options as part of compensation often buy back stock to offset the dilution from option exercise. Since the cost to the firm of option exercise is more properly a part of compensation expense, the analyst should reclassify the financing cash flow to repurchase shares as operating cash flow. Neither financing payables not securitizing receivables results in financing outflows.
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