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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?

• Operating section

 

• Investing section

 

• Financing section

 

• It would not appear on the statement.

Project Finance Cash Flow Management Cash Flow Forecasting Financial Reporting Feasibility Studies
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Question added by Shazia Anees , Assistant Manager Finance , Arham Trading Company
Date Posted: 2015/05/01
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

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

Investing Section since it would include monthly lease  rental paymnts made

WILSON DEPALAC
by WILSON DEPALAC , assistant manager accounts , falcon pack industry llc

ANSWER IS B. INVESTING SECTION

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

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

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