At the Beginning of the Year,a Firm Leased Equipment on a Capital

question 27

Multiple Choice

At the beginning of the year,a firm leased equipment on a capital lease,capitalizing $50,000 in both its lease liability and leased assets accounts.The contract calls for payments each December 31 of $10,000.The lessee's annual reporting period ends December 31 and the contract reflects 10% interest.The lessee made the first payment as required.Which of the following should be reflected on the statement of cash flows under the indirect method for the first year of the contract (ignoring noncash disclosures) ?

• A) $10,000 financing cash outflow
• B) $10,000 operating cash outflow
• C) $5,000 operating cash outflow;$5,000 financing cash outflow
• D) $5,000 addition in the reconciliation of earnings and net operating cash flow

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Definitions:

Knowledge Sharing

The exchange of information, skills, or expertise among individuals or organizations to foster learning and innovation.

Learning And Development

The ongoing process of acquiring new knowledge, skills, and competencies to improve one's capabilities, performance, and career prospects, typically supported by educational and professional training programs.

Employee Development

Initiatives taken by an organization to improve the knowledge, skills, and abilities of its employees.

Strategic Business Partner

A role within organizations where departments or individuals support and align their activities with the overall business strategy and goals to drive success.