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 Leasing eliminated the need for long contracts Purchased equipment had limited resale value Businesses lacked funds to buy equipment outright 2. What primarily distinguishes different types of leases? * The interest rate applied The equipment brand The geographic location The buyout structure 3. Why are lease payments typically higher in a $1 buyout lease? * The equipment is mostly paid off during the term Insurance is included in the payment Taxes are prepaid upfront The contract is short-term 4. What option is NOT typically available at the end of an FMV lease? * Automatically receive ownership of the equipment Purchase the equipment for fair market value Renew the lease agreement Return the equipment to the lessor 5. Under ASC 842, how are most leases treated? * They must appear on the balance sheet They are excluded from financial statements They are treated as cash expenses only 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.
