Under the __________,The Net Cash Flow from Operating Activities Is

question 11

Short Answer

Under the __________,the net cash flow from operating activities is computed by adjusting net income to remove the effect of all deferrals of past operating cash receipts and payments,and all accruals of future operating cash receipts or payments.

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Definitions:

Lessees' Balance Sheet

The financial statement that reflects the rights and obligations arising from leasing agreements, including both right-of-use assets and lease liabilities, from the perspective of the lessee.

Capital Leases

A lease that transfers substantially all risks and rewards of ownership of the asset to the lessee, effectively treated as a purchase.

Operating Leases

Leases where the lessor retains ownership of the asset, and the asset is returned after the lease term; typically involves equipment and property.

Direct Financing Capital Lease

A type of lease in which the lessor finances the leased asset, and all risks and rewards of ownership are transferred to the lessee, without actual transfer of ownership.