61 - Long-term debt is often reported as one amount on the...

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Capital Leases Long-term noncancelable debt Four criteria Title transfers to lessee at end of lease Lease contains a bargain purchase option Lease term is 75% or more of asset’s life Present value of lease payments is 90% or more than fair value of leased asset Report liabilities on the balance sheet Liabilities on the Balance Sheet Current liabilities are listed and include the current portion of long-term debt
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Unformatted text preview: Long-term debt is often reported as one amount on the balance sheet A disclosure note provides the detail of long-term debt Long-Term Liabilities on the Cash Flow Statement Issuing bonds and long-term borrowing are reported as financing inflows Payments of bond and loan principal are reported as financing inflows Interest expense is reported in the operating section...
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This note was uploaded on 06/15/2011 for the course ACCT 23020 taught by Professor Dorff,p during the Spring '08 term at Kent State.

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