CLFP EXAM|QUESTIONS AND VERIFIED ANSWERS|BRAND NEW UPDATE|GRADED A+

Question 1

What authority defines what a lease is for accounting purposes?



Select one:

a. Financial Accounting Services Board

b. Financial Accounting Standards Board

c. Financial Assets Standards Board

d. Flavored Apples Standards Board

CORRECT ANSWER

Answer:



Financial Accounting Standards Board




Question 2

What authority defines what a lease is for legal purposes?



Select one:

a. IRS

b. Common law

c. UCC

d. Bankruptcy Code


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, CORRECT ANSWER

Answer:



UCC




Question 3

What section of the IRS Code defines what is not a lease, for tax purposes?



Select one:

a. IRS 2001-28

b. IRS 842-2A

c. IRS 55-540

d. IRS 8401-77

CORRECT ANSWER

Answer:



IRS 55-540




Question 4

What is a Capital Lease?



Select one:

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.


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