J Corp. is a lessee that entered into an operating lease in February of Year 1. The company's statement of cash flows for the year ending December 31, Year 1 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.

Question

Quizplus · Accepted Answer

Rent payments for operating leases are reported in a statement of cash flows as operating activities by the lessee.

J Corp Is a Lessee That Entered into an Operating Lease