单选题 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.

【正确答案】 B

【答案解析】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.