Certified Lease & Finance Professional (CLFP) – Practice Exam Questions and Correct Answers

CLFP Practice Exam Questions
And Correct Answers


What authority defines what a lease is for legal purposes?



a. IRS

b. Common law

c. UCC

d. Bankruptcy Code

c. UCC




What is the significance of Revenue Procedure 2001-28?



a. It lays out criteria the IRS would use to respond to advanced rulings on
whether a transaction is a lease.

b. It lays out criteria the FASB would use to respond to advanced rulings on
whether a transaction is a lease.

c. In the context of equipment financing, it has no significance.

d. It lays out criteria the IRS would use to respond to advanced rulings on
whether a transaction is a loan.

a. It lays out criteria the IRS would use to respond to advanced rulings on
whether a transaction is a lease.

, Order the given events in the sequence in which they occurred.

A. Investment Tax Credit (ITC) introduced

B. Independent third-party leasing and finance companies formed

C. FASB 13

D. IRS Section 167 issued

BDAC




What is a Capital Lease?



a. A lease that has the characteristics of a usage agreement, as defined by ASC
842.

b. A lease that has the characteristics of a purchase agreement, as defined by ASC
842.

c. A lease that has the characteristics of a true lease, as defined by UCC.

d. A lease that has the characteristics of a secured transaction, as defined by UCC.

b. A lease that has the characteristics of a purchase agreement, as defined by ASC
842.




What are the three main sources of U.S. law?