{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online