mock AM, #40 why is C incorrect
#40 Which of the following most likely increased both profitability and CFO
A - defrred revenue recognition
B- capitalization of interestcosts
C extension of payment terms with suppliers
the answer is B, but it seems to me C is also correct
(1) extension of payment terms lower expenses in current term higher NI higher profitability
(2) extension of payment terms - lower expenses in current term lower cash outflows higher CFO |