For the lessor, cash receipts for a direct financing lease are classified as inflows in the financing activities section of the cash flow statement.

Name: For the lessor, cash receipts for a direct financing lease are classified as inflows in the financing activities section of the cash flow statement.
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For the lessor, cash receipts from a direct financing lease are classified as inflows in the operating activities section of the cash flow statement, not the financing activities section.

For the Lessor, Cash Receipts for a Direct Financing Lease