The way IFRS GAAP demand that financial leases be reported encourages firms to:
A) Choose financial leases over outright acquisition in obtaining control over fixed resources to help increase the cash flow from operations.
B) Choose outright acquisition over financial leases in obtaining control over fixed resources to help reduce the cash outflow from investing.
C) Choose financial leases over outright acquisition in obtaining control over fixed resources to help hide the liability that reflects their commitment to owing the periodic lease payment for the duration of the contract.
D) Choose strategically between a financial lease and outright acquisition in order to obtain control over fixed resources since the rules neutralize the impact of the choice on the reported earnings.
Correct Answer:
Verified
Q7: The primary impact of the timing difference
Q8: Generally,the operating cash flow is expected to
Q9: A retailer is paid cash by its
Q10: How is the available cash flow calculated?
A)
Q11: Two independent business entities A and B
Q13: Of the 4 strategies described below,which one
Q14: The indirect method of calculation of the
Q15: What ratio is used to calculate 'cash
Q16: A business entity generates a cash flow
Q17: A business entity is generating small operating
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents