Question: Topic: Current accounting for leases requires that certain leases be capitalized. For capital leases, an asset and the associated liability are recorded. Whether or not

Topic: Current accounting for leases requires that certain leases be capitalized. For capital leases, an asset and the associated liability are recorded. Whether or not the lease is capitalized, the cash fows are the same. The rental payments are set by contract and are paid over time at equally spaced intervals. Required: If one of the objectives of fnancial reporting is to enable investors, creditors, and other users to project future cash fows, what difference does it make whether we report the lease as a liability or simply describe its terms in foot-notes? Discuss. Journal Article Review: In addition, read journal article: Assessing the Allowance for Doubtful Accounts by MARK E. RILEY (Journal of Accountancy) found at: http://www.journalofaccountancy.com/ssues/2009/Sep/20091539 and submit one page review on Blackboard

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