To determine the most likely motivation behind management of Hartfiled Industries decision to change accounting methodology. Introduction: A change in accounting methodology means a change in accounting principles, accounting estimates or reporting entity. If a lease payment is classified as operating expense it does not reflect as a part of capital of the firm while if the lease is classified as capital lease, the present value of lease expenses is treated as debt, and the interest on this amount is shown as a part of the income statement.

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Answer 1

Question

Chapter 14, Problem 10PS

Summary Introduction

To determine the most likely motivation behind management of Hartfiled Industries decision to change accounting methodology.

Introduction:

A change in accounting methodology means a change in accounting principles, accounting estimates or reporting entity.

If a lease payment is classified as operating expense it does not reflect as a part of capital of the firm while if the lease is classified as capital lease, the present value of lease expenses is treated as debt, and the interest on this amount is shown as a part of the income statement.

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Answer 2

Question

Chapter 14, Problem 10PS

Summary Introduction

To determine the most likely motivation behind management of Hartfiled Industries decision to change accounting methodology.

Introduction:

A change in accounting methodology means a change in accounting principles, accounting estimates or reporting entity.

If a lease payment is classified as operating expense it does not reflect as a part of capital of the firm while if the lease is classified as capital lease, the present value of lease expenses is treated as debt, and the interest on this amount is shown as a part of the income statement.

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Answer 3

Question

Chapter 14, Problem 10PS

Summary Introduction

To determine the most likely motivation behind management of Hartfiled Industries decision to change accounting methodology.

Introduction:

A change in accounting methodology means a change in accounting principles, accounting estimates or reporting entity.

If a lease payment is classified as operating expense it does not reflect as a part of capital of the firm while if the lease is classified as capital lease, the present value of lease expenses is treated as debt, and the interest on this amount is shown as a part of the income statement.

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Answer 4

Question

Chapter 14, Problem 10PS

Summary Introduction

To determine the most likely motivation behind management of Hartfiled Industries decision to change accounting methodology.

Introduction:

A change in accounting methodology means a change in accounting principles, accounting estimates or reporting entity.

If a lease payment is classified as operating expense it does not reflect as a part of capital of the firm while if the lease is classified as capital lease, the present value of lease expenses is treated as debt, and the interest on this amount is shown as a part of the income statement.

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Answer 5

Chapter 14, Problem 10PS

Summary Introduction

To determine the most likely motivation behind management of Hartfiled Industries decision to change accounting methodology.

Introduction:

A change in accounting methodology means a change in accounting principles, accounting estimates or reporting entity.

If a lease payment is classified as operating expense it does not reflect as a part of capital of the firm while if the lease is classified as capital lease, the present value of lease expenses is treated as debt, and the interest on this amount is shown as a part of the income statement.

Answer 6

Chapter 14, Problem 10PS

Summary Introduction

To determine the most likely motivation behind management of Hartfiled Industries decision to change accounting methodology.

Introduction:

A change in accounting methodology means a change in accounting principles, accounting estimates or reporting entity.

If a lease payment is classified as operating expense it does not reflect as a part of capital of the firm while if the lease is classified as capital lease, the present value of lease expenses is treated as debt, and the interest on this amount is shown as a part of the income statement.

Answer 7

Chapter 14, Problem 10PS

Summary Introduction

To determine the most likely motivation behind management of Hartfiled Industries decision to change accounting methodology.

Introduction:

A change in accounting methodology means a change in accounting principles, accounting estimates or reporting entity.

If a lease payment is classified as operating expense it does not reflect as a part of capital of the firm while if the lease is classified as capital lease, the present value of lease expenses is treated as debt, and the interest on this amount is shown as a part of the income statement.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 14 - Prob. 1PS Ch. 14 - Prob. 2PS Ch. 14 - The Crusty Pie Co., which specializes in apple...Ch. 14 - The ABC Corporation has a profit margin on sales...Ch. 14 - A company’s current ratio is 2. If the company...Ch. 14 - Cash flow from investing activities excludes:...Ch. 14 - Cash flow from operating activities includes:...Ch. 14 - Prob. 8PS Ch. 14 - Prob. 9PS Ch. 14 - Prob. 10PS

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