P Corp Leased an Asset to L Corp

question 108

Multiple Choice

P Corp. leased an asset to L Corp. using an operating lease in February. P Corp.'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 inflow 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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