Knowledge Check 01 Which of the following statements about why companies frequently choose to lease assets are true? (Select all that apply.) Check All That Apply Leasing offers flexibility when disposing of the asset. Leasing offers tax savings over outright purchases. Leasing provides protection against the risk of declining asset values. Leasing reduces the upfront cash needed to use an asset. Knowledge Check 01 Which of the following describe the criteria that must be met for a company to treat a lease as a short-term lease? (Select all that apply.) Check All That Apply The lease term is twelve months or less The lease term (including any options to renew or extend) is twelve months or less. The lease does not contain a purchase option that would extend the term beyond twelve months. The lease does not contain a purchase option that the lessee is reasonably certain to exercise, which would extend the term beyond twelve months. Knowledge Check 01 Which of the following statements about the impact of leases on the statement of cash flows are true? (Select all that apply.) Check All That Apply The lessee reports cash payments for operating leases as cash flows from operating activities. The lessor reports cash payments for operating leases as cash flows from operating activities. The lessee reports cash payments for finance leases as cash flows from financing activities. The lessor reports cash receipts from a sales-type lease as cash inflows from operating activities. Which of the following statements about the classification and accounting for leases are true? (Select all that apply.) Check All That Apply Under U.S. GAAP, lessees classify leases as either financing leases or operating leases. Under U.S. GAAP, lessors classify leases as either sales-type leases or operating leases. Under international standards, lessors classify all leases as operating leases. Under international standards, lessees classify all leases as operating leases