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.

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Definitions:

Concise

Expressing or covering much in few words; brief in form but comprehensive in scope.

Brand Awareness

The extent to which consumers are familiar with the qualities or image of a particular brand of goods or services.

Circumstances

The conditions or facts affecting a situation, event, or action.

Recognition

The acknowledgment or appreciation of an individual’s achievements or an organization's success, often leading to increased motivation and morale.