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WeWork’s mischaracterization of its expenses as operating assets improved WeWork’s: Total cash flows Revenues Cost structure...

  1. WeWork’s mischaracterization of its expenses as operating assets improved WeWork’s:
    1. Total cash flows
    2. Revenues
    3. Cost structure
    4. All of the above
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Answer #1

Categorizing expenses as operating assets means shifting the item from Profit and Loss A/c expenses side to Balance sheet assets side. the same would improve cost structure.

The cash flows would remain the same as payment needs to be made when amount is due irrespective of it is a P&L or Balancesheet item

Revenues would also not be impacted as there is no link between revenue and treatment of cost.

Only cost would reduce thus cost structure would improve

Answer is C.Cost Structure

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