The acquisition of a building by entering into a capital lease would appear in which of the following sections of the cash flow statement?

Question

• Operating section

• Investing section

• Financing section

• It would not appear on the statement.

Shahbaz Hayder · Answer

It would not appear on the statement.

Capital lease has no statement of cash flow implications at lease inception and is disclosed by the lessee as a non-cash investing and financing transaction. As lease payments are made, they are presented as financing cash outflows.

MUSA KISAMBIRA · Answer

Investing Section since it would include monthly lease rental paymnts made

WILSON DEPALAC · Answer

ANSWER IS B. INVESTING SECTION

Sara Naeem · Answer

It would not appear in the statement...........

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The acquisition of a building by entering into a capital lease would appear in which of the following sections of the cash flow statement?

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