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