-research the ethics involved in reporting leases, focusing on the ethical violations of off-balance-sheet financing, when capital leases were misreported as operating leases. Provide two current rules of accounting for leases. How are the income statement and balance sheet affected by these rules? Which method do you think best represents the liabilities and expenses of a company and why? Provide a rationale for your response. 2- Describe the difference between reporting accounting changes, changes in estimates, and error corrections. Provide an example of each and discuss their effects on the financial statements. 3-Provide an example of the type of decision an accounting professional would make using the statement of cash flows versus one made using the income statement. Why is the statement of cash flows a required statement? Identify and discuss three significant observations that can be made about a company by analyzing the cash flow statement?

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1 Ethics in Reporting Leases Offbalancesheet financing occurs when a company misreports capital leases as operating leases to keep the leased assets and liabilities off the balance sheet thus understa... View the full answer