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.

Question

Quizplus · Accepted Answer

Rent payments for operating leases are considered an operating expense and are therefore included in the operating activities section of the statement of cash flows.

J Corp Acquired an Asset Using an Operating Lease in February