CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

Which of the following is reported as financing cash flow?

I. Proceeds provided from loans secured by accounts receivable
II. Cash provided from outright sales of accounts receivable, whether to a factor or through a securitization agreement
III. Cash provided from outright sales of accounts receivable to a factor
IV. Cash provided from outright sales of accounts receivable through a securitization agreement
A. I only
B. I, II, III and IV
C. I and III
Explanation: Cash provided from outright sales of accounts receivable is reported as operating cash flow. Such operating cash flow is effectively borrowed from a future reporting period and is not sustainable.

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