CFA Practice Question

There are 1201 practice questions for this topic.

CFA Practice Question

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
Correct Answer: 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.

User Contributed Comments 0

You need to log in first to add your comment.