Which of the following would be considered the most discretionary of the following cash outflows?
A)Interest payment
B)Payment to suppliers
C)Repurchase of stock
D)Administrative expense

Question

Quizplus · Accepted Answer

Repurchase of stock is considered the most discretionary cash outflow among the options given. Companies choose to repurchase stock as a way to return value to shareholders, and this decision is typically made based on available excess cash and strategic considerations, making it more discretionary compared to obligatory expenses like interest payments, payments to suppliers, or administrative expenses.

Which of the Following Would Be Considered the Most Discretionary