NO.PZ2023020602000116
问题如下：
Train Company paid $8 million to acquire a franchise at the beginning of 20X5 that was expensed in 20X5. If Train had elected to capitalize the franchise as an intangible asset and amortize the cost of the franchise over eight years, what effect would this decision have on Train's 20X5 cash flow from operations (CFO) and 20X6 debt-to-assets-ratio?选项：
A.A Both would be higher with capitalization. B.Both would be lower with capitalization. C.One would be higher and one would be lower with capitalization.解释：
If the cost were amortized rather than expensed, the $8 million cost of the franchise would be classified as an investing cash flow rather than an operating cash flow, so CFO would increase (and CFI decrease). The asset created by capitalizing the cost would increase assets, so the debt-to-assets ratio would decrease.请问是考solvency ratio 吗 这个考点很重要吗？
虽然这道题没有问，但是怎么判断 20X5(CFO) 和20X6 debt-to-assets-ratio 谁高谁低呢？
麻烦老师详细解释一下这一题~
