2026 CLFP Recertification Quiz #2 CLFP Recertification: Quiz #3: ASC 840 vs. ASC 842 for Lessors 1. Under ASC 840, how were lessors required to classify their leases? * As tangible or intangible leases As finance or sales-type leases As short-term or long-term leases As either capital or operating leases 2. Which of the following is not a lease classification under ASC 842? * Capital lease Direct financing lease Sales-type lease Operating lease 3. Under ASC 842, what happens if collectability is not probable for a lease that would otherwise be a direct financing lease? * It is classified as an operating lease It is classified as a sales-type lease It is classified as a capital lease It is not recorded at all 4. What is a key change in how initial direct costs are treated under ASC 842? * Legal fees are always capitalized Internal salaries can be deferred over the lease term All costs are capitalized Only incremental costs directly tied to obtaining the lease are capitalized 5. What test must be applied under ASC 842 to determine if a transaction is a sale? * Collectability test Fair value test Loan classification test Transfer of control test Name * Name First First Last Last Email - Email - USE THE EMAIL ADDRESS WHERE THE INSTRUCTIONS WERE SENT TO (NOT FROM); OTHERWISE, OUR SYSTEM WILL NOT UPDATE YOUR CONTACT RECORD! * Submit If you are human, leave this field blank.
