During Year 5, Taylor Corporation Signed a Long-Term Lease for a Building.It

question 117

Multiple Choice

During Year 5, Taylor Corporation signed a long-term lease for a building.It classified the lease as a capital lease and recorded it in the accounts as follows: Building ........... ..........................3,000
Capitalized Lease Obligation ..........................3,000
The transaction requires

• A)inclusion in the statement of cash flows as an operating activity, only.
• B)inclusion in the statement of cash flows as an investing activity, only.
• C)inclusion in the statement of cash flows as a financing activity, only.
• D)disclosure in a supplementary schedule or notes to the financial statements.
• E)disclosure in managements' discussion and analysis.

---

Definitions:

Taking Responsibility

The action of acknowledging and accepting the choices one has made, the actions one has taken, and the results thereof.

Accountable

Accountable means being responsible or answerable for actions or decisions, both in terms of the processes followed and the outcomes achieved.

Liable

Legally responsible or obligated, often referring to the duty to compensate for harm or damage caused.

Blended Value Theorists

Individuals or scholars who advocate for combining social and financial returns in investment and organizational strategy.