The Operating Lease Method Classifies All of the Lease Payment

question 101

Multiple Choice

The operating lease method classifies all of the lease payment each period as _____.

• A)an investment use of cash on the statement of cash flows.
• B)an operating use of cash on the statement of cash flows.
• C)a financing use of cash on the statement of cash flows.
• D)a cash expenditure.
• E)none of the above

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Definitions:

Morality

Standards that discern between ethical and unethical actions.

Beneficial Effects

Positive outcomes or advantages that result from a particular action or policy.

Ethical Action

Behavior guided by moral principles, aiming to promote good and avoid harm.

Principle of Utility

A fundamental concept in utilitarian ethics that suggests actions should be judged as right or wrong based on their outcomes, specifically their ability to produce the greatest happiness for the greatest number of people.