AFIP BASIC CERTIFICATION COURSE 2026/2027 | 151
VERIFIED QUESTIONS NEWEST 2026/2027 ACTUAL EXAM
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS | PDF
All of the following items are triggering terms on an advertisement for an
installment sale:
A. The number or percentage of any down payment
B. The number of payments or the contract term
C. The amount of any payment
D. The amount of any finance charge
True
At the point in the financing process where the retail installment sale
agreement is to be disclosed to the customer, at that point in time the parties to
the contract are the customer and the _________.
B. Selling dealer
As recorded on an installment sale agreement the total price or deferred
contract price would be the total of the _______.
D. All of the above
(True/False)
Whenever discussing financing with a prospective customer regarding the cost
of credit, regardless of it's in a oral discussion, advertisement, or during
discourse on an installment sale contract, the term "APR" or "annual percentage
rate" should be used.
True
,What is the maximum criminal liability for willful and knowing violation of TILA
Reg Z and or CLA Reg M?
D. $5,000 fine, 1 year imprisonment, combination of both
(True/False)
According to Regulation Z, down payment and total sale price must be
disclosed.
True
(True/False)
Any communication to a single individual - verbally or in writing does not meet
standards for an advertisement.
True
(True/False)
General phrase such as: Zero APR, no downpayment, or financing available does
meet the standards for an ad.
False
(True/False)
A violation of the advertising rules may result in a cease and desist order.
True
(True/False)
A potential fine of up to $43,792 per day / per violation - if the cease and desist
order is ignored - plus potential UDAP action at the state level.
True
(True/False)
The dealer is liable for the actions of the advertisement agency.
, True
What is the correct way to record negative equity on an installment sale
agreement and when the negative equity is greater than the amount paid
down?
A. Deduct the cash down amount from the negative equity, record the down
payment on the contract as zero, and record the amount still owed on the trade
as an additional amount financed.
Which of the dollar amounts listed in the TILA box disclosures are included in
the Total Sale Price?
D. All of the above
(True/False)
A principal purpose of TILA is to promote the informed use of customer credit
by requiring disclosures about its terms and cost.
True
The TILA/Reg. Z states that the customer must take possession of the Retail
Installment Sale Agreement prior to it being disclosed.
Which of the following "best practice" steps should be followed?
D. All of the above
(True/False)
A situation exists that requires the customer to be re-contracted and sign a new
Retail Installment Sale Agreement five days after consummating the deal.
If the reconstruct period is less than seven business days, the date recorded on
the initial installment sale agreement can be used for the second agreement.
False
The TILA disclosures must be given prior to the consummation and in a form the
customer can keep. Best practices dictate that _________
VERIFIED QUESTIONS NEWEST 2026/2027 ACTUAL EXAM
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS | PDF
All of the following items are triggering terms on an advertisement for an
installment sale:
A. The number or percentage of any down payment
B. The number of payments or the contract term
C. The amount of any payment
D. The amount of any finance charge
True
At the point in the financing process where the retail installment sale
agreement is to be disclosed to the customer, at that point in time the parties to
the contract are the customer and the _________.
B. Selling dealer
As recorded on an installment sale agreement the total price or deferred
contract price would be the total of the _______.
D. All of the above
(True/False)
Whenever discussing financing with a prospective customer regarding the cost
of credit, regardless of it's in a oral discussion, advertisement, or during
discourse on an installment sale contract, the term "APR" or "annual percentage
rate" should be used.
True
,What is the maximum criminal liability for willful and knowing violation of TILA
Reg Z and or CLA Reg M?
D. $5,000 fine, 1 year imprisonment, combination of both
(True/False)
According to Regulation Z, down payment and total sale price must be
disclosed.
True
(True/False)
Any communication to a single individual - verbally or in writing does not meet
standards for an advertisement.
True
(True/False)
General phrase such as: Zero APR, no downpayment, or financing available does
meet the standards for an ad.
False
(True/False)
A violation of the advertising rules may result in a cease and desist order.
True
(True/False)
A potential fine of up to $43,792 per day / per violation - if the cease and desist
order is ignored - plus potential UDAP action at the state level.
True
(True/False)
The dealer is liable for the actions of the advertisement agency.
, True
What is the correct way to record negative equity on an installment sale
agreement and when the negative equity is greater than the amount paid
down?
A. Deduct the cash down amount from the negative equity, record the down
payment on the contract as zero, and record the amount still owed on the trade
as an additional amount financed.
Which of the dollar amounts listed in the TILA box disclosures are included in
the Total Sale Price?
D. All of the above
(True/False)
A principal purpose of TILA is to promote the informed use of customer credit
by requiring disclosures about its terms and cost.
True
The TILA/Reg. Z states that the customer must take possession of the Retail
Installment Sale Agreement prior to it being disclosed.
Which of the following "best practice" steps should be followed?
D. All of the above
(True/False)
A situation exists that requires the customer to be re-contracted and sign a new
Retail Installment Sale Agreement five days after consummating the deal.
If the reconstruct period is less than seven business days, the date recorded on
the initial installment sale agreement can be used for the second agreement.
False
The TILA disclosures must be given prior to the consummation and in a form the
customer can keep. Best practices dictate that _________
