2027 CLFP Recertification Quiz #1: Basics of Lease vs. Loan 2027 CLFP Recertification: Quiz #1: Basics of Lease vs. Loan 1. What is a key reason equipment leasing originally became popular? * Businesses preferred paying higher upfront costs Purchased equipment had limited resale value Leasing eliminated the need for long contracts Businesses lacked funds to buy equipment outright 2. What primarily distinguishes different types of leases? * The equipment brand The buyout structure The interest rate applied The geographic location 3. Why are lease payments typically higher in a $1 buyout lease? * Insurance is included in the payment The contract is short-term The equipment is mostly paid off during the term Taxes are prepaid upfront 4. What option is NOT typically available at the end of an FMV lease? * Renew the lease agreement Purchase the equipment for fair market value Automatically receive ownership of the equipment Return the equipment to the lessor 5. Under ASC 842, how are most leases treated? * They are treated as cash expenses only They are excluded from financial statements They must appear on the balance sheet They are only recorded at the end of the term Name * Name First First Last Last Email - MUST MATCH THE EMAIL YOU RECEIVED YOUR INSTRUCTIONS * Submit If you are human, leave this field blank.
