问题
单项选择题
Ironman Nutrition has traditionally followed a conservative policy of expensing most costs. However, the new CFO is an advocate of capitalization. During a meeting with company executives he explains that compared to expensing, capitalization is least likely to result in:
A．
| A. lower income variability. |
B．
| B. higher net cash flows. |
C．
| C. lower debt to equity ratio. |
答案
参考答案：B
解析：There is no difference in net cash flow. However, a firm that capitalizes classifies the expenditure as investing (not operations) cash flow from operations will be higher and cash flow from investing will be lower.