J Corp Acquired an Asset Using an Operating Lease in February

question 25

Multiple Choice

J Corp. acquired an asset using an operating lease in February. The company's December 31 statement of cash flows will report

• A)a cash outflow from investing activities.
• B)a cash outflow from financing activities.
• C)a cash outflow from operating activities
• D)no cash outflow.Rent payments for operating leases are reported in a statement of cash flows as financing activities by the lessee and investing activities by the lessor.

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Definitions:

Initiating Structure

A leadership behavior that involves setting up clear roles, responsibilities, and tasks for team members, aimed at organizing work and establishing clear directions.

Nurturing Followers

The act of supporting and encouraging followers’ development and well-being to enhance their performance and growth.

Employee Orientation

An approach or attitude by management that prioritizes the well-being, satisfaction, and development of employees in an organization.

Relationship-focused

An approach that prioritizes establishing, maintaining, and improving interpersonal connections within team or organizational settings.