Question: How does share-based compensation affect cash flow statement? Multiple choice: A. Share-based compensation is a non-cash expense, hence has no impact on operating activities of

How does share-based compensation affect cash flow statement?

Multiple choice: A. Share-based compensation is a non-cash expense, hence has no impact on operating activities of cash flow statement irrespective of cash flow method B. Share-based compensation has to be added back to net income in the operating activities section of the cash flow statement based on indirect method C. Potential tax liability might arise from positive gains if stock options exercised at price higher than the market value D. A and C E. B and C

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