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Which of the following statements characterizes an operating lease? a The lessee reports cash outflows as financing activities. b The lessor records depreciation and lease

Which of the following statements characterizes an operating lease?

a The lessee reports cash outflows as financing activities.

b The lessor records depreciation and lease revenue.

c

The lessee has an option to purchase the leased assets and is reasonably sure to exercise the option.

d

The lessor transfers title at the end of the lease term.

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