2026 CLFP Recertification Quiz #3: ASC 840 vs. ASC 842 for Lessors CLFP Recertification: Quiz #3: ASC 840 vs. ASC 842 for Lessors 1. Under ASC 840, how were lessors required to classify their leases? * As either capital or operating leases As finance or sales-type leases As tangible or intangible leases As short-term or long-term leases 2. Which of the following is not a lease classification under ASC 842? * Direct financing lease Sales-type lease Capital 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 not recorded at all It is classified as a capital lease It is classified as a sales-type lease It is classified as an operating lease 4. What is a key change in how initial direct costs are treated under ASC 842? * Legal fees are always capitalized All costs are capitalized Only incremental costs directly tied to obtaining the lease are capitalized Internal salaries can be deferred over the lease term 5. What test must be applied under ASC 842 to determine if a transaction is a sale? * Fair value test Collectability 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.
