UNL FINA 361 FINAL EXAM
CERTIFICATION EVALUATION EXAMS
SCRIPT STUDY GUIDE WITH SOLVED
QUESTIONS
⩥ Conditional Sales Contract.
Answer: a. financing of property, title which will pass only when the
buyer has met their obligations. b. lessee is treated as the owner of the
asset for IRS (55-540; IF PETS), but, clouds title by a lien until all terms
are met.
⩥ Consumer Lease.
Answer: A lease in which the lessee enters to acquire property for
personal, family or household use.
⩥ Direct Financing Lease.
Answer: A capital lease that DOES NOT give rise to manufacturers or
dealer's profit (or loss) to the lessor.
⩥ Discounted Lease.
Answer: A lease in which the payment stream is assigned by the lessor to
a funding source in return for immediate payment of the PV of the
stream of payments.
,⩥ Dry Lease.
Answer: A NET LEASE, traditionally for aircraft or marine vessels,
which requires the LESSEE TO PROCURE all personnel, fuel and
provisions necessary to operate the craft.
⩥ Factoring.
Answer: The assignment by a lessee of accounts receivable to a lessor as
collateral for a specified term and payment amount resulting in liquidity
to improve cash flow or make capital acquisitions.
⩥ Finance Lease.
Answer: A net lease, used to finance the use of property for the majority
of its useful life.
⩥ Full Payout Lease.
Answer: A lease in which the LESSOR RECOVERS, through the lease
payments, ALL COSTS incurred in the lease plus an acceptable rate of
return, WITHOUT reliance on the leased property's RESIDUAL value.
⩥ Installment Loan.
Answer: Any loan, the terms of which call for regular or irregular
periodic payments, the sum of which will repay the debt and interest.
,⩥ Lease Intended as security.
Answer: A transaction in which the form is a lease, but the substance is a
conditional sale contract or a loan with a security agreement on the
property.
⩥ Leveraged Lease.
Answer: Any lease involving, at minimum, a lessee, a lessor and a
funding source from whom the lessor borrows a significant portion of
the cost of equipment and holds an (minimum of 20%) equity position.
⩥ Master Lease.
Answer: A document under which a lessee may add additional schedules
representing property later acquired, subject to the same general terms
and conditions.
⩥ Money-over-Money Lease.
Answer: A NON-TAX or CSC where the title is intended to pass to the
lessee at the end of the lease term.
⩥ Municipal Lease.
Answer: A lease to a municipality or government agency, which isn't
typically a true lease and from which the interest earnings to the lessor
are tax exempt.
, ⩥ Net Lease.
Answer: A lease in which all costs associated with use, maintenance,
insurance, and property taxes are PAID separately BY the LESSEE (i.e.
not included in rental payment).
⩥ Non-tax Lease.
Answer: 1. Any lease in which the lessee is, or will automatically
become, the owner during or at lease end, and, is entitled to all of the tax
beneifts of ownership (e.g. money-over-money, CSC, purchase money
security agreement, or lease intended as security).
⩥ Open-End Lease.
Answer: A lease in which the LESSEE GUARANTEES the future
RESIDUAL value of the property to be realized by the lessor at lease
end.
⩥ Operating Lease.
Answer: Any lease that has the characteristics of a usage agreement and
also fails to meet any of the FASB 13 rules for a capital lease.
⩥ Purchase Money Security Interest.
Answer: A security interest granted in property to secure the payment of
the purchase price of the property.
CERTIFICATION EVALUATION EXAMS
SCRIPT STUDY GUIDE WITH SOLVED
QUESTIONS
⩥ Conditional Sales Contract.
Answer: a. financing of property, title which will pass only when the
buyer has met their obligations. b. lessee is treated as the owner of the
asset for IRS (55-540; IF PETS), but, clouds title by a lien until all terms
are met.
⩥ Consumer Lease.
Answer: A lease in which the lessee enters to acquire property for
personal, family or household use.
⩥ Direct Financing Lease.
Answer: A capital lease that DOES NOT give rise to manufacturers or
dealer's profit (or loss) to the lessor.
⩥ Discounted Lease.
Answer: A lease in which the payment stream is assigned by the lessor to
a funding source in return for immediate payment of the PV of the
stream of payments.
,⩥ Dry Lease.
Answer: A NET LEASE, traditionally for aircraft or marine vessels,
which requires the LESSEE TO PROCURE all personnel, fuel and
provisions necessary to operate the craft.
⩥ Factoring.
Answer: The assignment by a lessee of accounts receivable to a lessor as
collateral for a specified term and payment amount resulting in liquidity
to improve cash flow or make capital acquisitions.
⩥ Finance Lease.
Answer: A net lease, used to finance the use of property for the majority
of its useful life.
⩥ Full Payout Lease.
Answer: A lease in which the LESSOR RECOVERS, through the lease
payments, ALL COSTS incurred in the lease plus an acceptable rate of
return, WITHOUT reliance on the leased property's RESIDUAL value.
⩥ Installment Loan.
Answer: Any loan, the terms of which call for regular or irregular
periodic payments, the sum of which will repay the debt and interest.
,⩥ Lease Intended as security.
Answer: A transaction in which the form is a lease, but the substance is a
conditional sale contract or a loan with a security agreement on the
property.
⩥ Leveraged Lease.
Answer: Any lease involving, at minimum, a lessee, a lessor and a
funding source from whom the lessor borrows a significant portion of
the cost of equipment and holds an (minimum of 20%) equity position.
⩥ Master Lease.
Answer: A document under which a lessee may add additional schedules
representing property later acquired, subject to the same general terms
and conditions.
⩥ Money-over-Money Lease.
Answer: A NON-TAX or CSC where the title is intended to pass to the
lessee at the end of the lease term.
⩥ Municipal Lease.
Answer: A lease to a municipality or government agency, which isn't
typically a true lease and from which the interest earnings to the lessor
are tax exempt.
, ⩥ Net Lease.
Answer: A lease in which all costs associated with use, maintenance,
insurance, and property taxes are PAID separately BY the LESSEE (i.e.
not included in rental payment).
⩥ Non-tax Lease.
Answer: 1. Any lease in which the lessee is, or will automatically
become, the owner during or at lease end, and, is entitled to all of the tax
beneifts of ownership (e.g. money-over-money, CSC, purchase money
security agreement, or lease intended as security).
⩥ Open-End Lease.
Answer: A lease in which the LESSEE GUARANTEES the future
RESIDUAL value of the property to be realized by the lessor at lease
end.
⩥ Operating Lease.
Answer: Any lease that has the characteristics of a usage agreement and
also fails to meet any of the FASB 13 rules for a capital lease.
⩥ Purchase Money Security Interest.
Answer: A security interest granted in property to secure the payment of
the purchase price of the property.
