A Finance Type Lease Arrangement Is a Lease Agreement That

question 36

True/False

A finance type lease arrangement is a lease agreement that transfers the risks and benefits associated with ownership to the lessee.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company, reflected in its statement of cash flows.

Operating Activities

Daily activities of a business related to producing and delivering its products and services, which generate the majority of a company's cash flow.

Investing Activities

Part of the cash flow statement that shows the inflow and outflow of cash from activities related to investments like securities, equipment, or properties.

Stock Dividend

A distribution of additional shares of stock by a corporation to its stockholders.