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CLFP Exam Practice Questions and
Answers Latest Update | Graded A+
What authority defines what a lease is for legal purposes?
a. IRS
b. Common law
c. UCC
d. Bankruptcy Code - (ANSWER)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. - (ANSWER)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
, 2
C. FASB 13
D. IRS Section 167 issued - (ANSWER)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.
- (ANSWER)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?
a. State, Federal and Common
b. Federal, Case, and Regulatory
c. Case, Statutory, and Regulatory
d. State, Statutory, and Regulatory - (ANSWER)C. Case, Statutory, and Regulatory
Where is the legal definition of what is NOT a "Lease" found?
CLFP Exam Practice Questions and
Answers Latest Update | Graded A+
What authority defines what a lease is for legal purposes?
a. IRS
b. Common law
c. UCC
d. Bankruptcy Code - (ANSWER)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. - (ANSWER)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
, 2
C. FASB 13
D. IRS Section 167 issued - (ANSWER)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.
- (ANSWER)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?
a. State, Federal and Common
b. Federal, Case, and Regulatory
c. Case, Statutory, and Regulatory
d. State, Statutory, and Regulatory - (ANSWER)C. Case, Statutory, and Regulatory
Where is the legal definition of what is NOT a "Lease" found?
