问题

问题如下：

In order to generate cash, Company L securitized its accounts receivable through a special purpose entity. Company M pledged its accounts receivable to a local bank in order to secure a short-term loan. Assuming Company L and Company M are identical in all other respects, which company has higher operating cash flow and which company has higher financing cash flow?

选项：

Higher operating cash flow

Higher financing cash flow

A.Company L Company L

B.Company L Company M

C.Company M Company L

解释：

The cash received from securitizing receivables is reported as an operating activity. The cash received from borrowing against accounts receivable is reported as a financing activity.