Under US GAAP, for a long$-$term operating lease, the lessee reports:

A$.$

after inception, the lease payment split between financing and operating outflows on the statement of cash flows.

B$.$

at inception, a right$-$of use asset and a lease liability calculated as the undiscounted value of its fixed lease payments.

C$.$

after inception, a single lease expense each year, which is a straight$-$line allocation of the cost of the lease over its term.