Reported net cash flow, unlike net income, is not affected by the choice of accounting alternatives. However, whether expenditure is recorded as a long-term asset (capitalized) or expensed significantly impacts the components of cash flow (i.e., operating, investing, or financing sections). Which of the following statements is true?

Question 6 options:

	Operating cash flows are unaffected by the decision to capitalize or expense.
	Investing cash flows are unaffected by the decision to capitalize or expense.
	When given a choice
	Total cash flows are higher if the outlay is recorded as a capital expenditure.