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) Dividend payments

Question

Quizplus · Accepted Answer

Repurchase of stock is the most discretionary cash outflow as it is a decision made by the company's management to buy back its own shares from the market. The other options, such as interest payments, supplier payments, and dividend payments, are typically non-discretionary cash outflows that the company is obligated to make according to its contracts and agreements.

Which of the Following Would Be Considered the Most Discretionary