Which of the following statements does not correctly describe an issue pertaining to the comparability of the cash flow statement across firms?

Multiple Choice

• Companies that aggressively manage their working capital cant easily manage the short-run appearance of their operating cash flows relative to those companies that do not aggressively manage their working capital.

• The proportion of leases treated as operating leases versus finance leases under ASC 842 varies substantially across firms.

• Companies selling their accounts receivable at year-end are distorting their cash flows in the current year relative to their competitors that do not sell their receivables at year-end.

• GAAP requires computer software development companies to expense all software development costs until the software reaches technological feasibility. However, GAAP does not have any criteria for determining technological feasibility which therefore allows companies flexibility with respect to this determination.