1. 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 operating activities

b. A cash outflow from investing activities

c. A cash outflow from financing activities

d. No cash outflow

2. Bishop Company is the lessee in an operating lease. Bishop will report straight-line lease expense if it uses:

a. IFRS

b. U.S. GAAP

c Either U.S. GAAP or IFRS

d. Neither U.S. GAAP nor IFRS