9)From the perspective of the lessor, two possible lease classifications are:

		a)Operating or financing.
		b)Sales-type or indirect financing.
		c)Financing or sales-type.
		d)Operating or sales-type.

10)How is the amortization of patents reported in a statement of cash flows that is prepared using the indirect method?

		a)A deduction from net income in arriving at cash flows from operations.
		b)An increase in cash flows from investing activities.
		c)An addition to net income in arriving at cash flows from operations.
		d)A decrease in cash flows from investing activities.

11) Which of the following is reported as an operating activity in the statement of cash flows?

		a)The issuance of a stock dividend.
		b)The sale of office equipment.
		c)The payment of interest on long-term notes.
		d)The payment of dividends.

12)If the lessor retains title to leased property under the terms of the lease:

		a)The lessor will record a greater amount of depreciation due to the residual value.
		b)The amount to be recovered through periodic lease payments is increased by the present value of the residual amount.
		c)The amount to be recovered through periodic lease payments is reduced by the present value of any residual amount.
		d)The amount to be recovered will be the same as if there were no residual value.