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We report all cash flows as operating cash flows, except the principal portion of each payment in a finance lease, which is a cash flow from financing activities. Extensive disclosure requirements for lessees and lessors are designed to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Knowledge Check 01 Which of the following statements about the impact of leases on the statement of cash flows are true? Note: Select all that apply.