Certified Lease & Finance Professional (CLFP) Class Practice Exam

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• How are partnership tax liabilities treated?
• Which activity commonly triggers foreign corporation registration in a state?
• Which option best describes marketing versus sales when multiple statements are true?
• Which clause is recommended to be included in lease agreements to protect the lessor's payment obligations?
• What does CFLL stand for?
• Under a Waiver of Defense Clause, payments are made to which party, and which party retains most defenses?
• Which statement best describes the typical processing requirement for securitization?
• When is a Real Estate Waiver required?
• What is Severability?
• Which of the following is a Lease vs Buy variable?
• What additional requirement is needed to qualify for a PMSI besides filing promptly?
• Which method has brand identity as an advantage?
• Which statement describes add'l fee income in the context of marketing leasing?
• In Money Over Money arrangements, which statement is most accurate?
• Security Deposit is defined as?
• Promotion is defined as:
• Which of the following is NOT typically considered Upfront Monies?
• Which lease type contains a payment stream that requires the lessee to make payments that either increase (step-up) or decrease (step-down) in amount over the lease term?
• What is the primary purpose of credit scoring?
• Which of the following is a recommended way to build relationships with banks by sharing plans?
• After presenting, what is typically the next step in the selling process?
• Brokering typically requires what?
• Which item is a key element of the Marketing Plan?
• When should interim rent be introduced in the selling process?
• Which of the following is a documentation barrier commonly encountered in vendor relationships?
• Case Law is best described as:
• In bankruptcy, the bar date is the deadline to file what?
• FMV in lease terminology stands for which statement?
• The Philadelphia Plan is primarily associated with which financing mechanism?
• What is the date commonly associated with Hammurabi's Code?
• Which of the following options best reflects a stated benefit of securitization?
• In the progression of lease types, which term indicates a lease where the lessor retains ownership?
• What does a nominal purchase option price in a capital lease indicate?
• Which of the following is an advantage of Equity/Debt funding?
• Which statement best defines an express warranty in a lease?
• In marketing to banks, a lease may be preferred to a loan because:
• What is Interim Rent?
• Which statement best describes how the selling process is conducted across companies?
• Which of the following is listed as a major cost for leasing companies?
• By when should a fixture filing be filed after installation?
• Which lease includes many additional services such as maintenance, insurance and property taxes that are paid for or performed by the lessor; the cost is built into the lease payments, also referred to as a full-service lease?
• Which statement about UCC Article 2 is true?
• Cost of Capital may determine which model in leasing arrangements?
• Who can submit a Proof of Claim without an attorney?
• Where is a UCC-1 financing statement typically filed to perfect a security interest?
• What term means personal property in a lease context?
• The Statute used to define who owned lease property occurred in which year?
• What information does a Proof of Claim specify?
• What type of bankruptcy is Chapter 7?
• Which lease type involves the lessor providing maintenance services with the cost possibly included in the lease or under a separate maintenance agreement?
• Which of the following is NOT listed as a characteristic of a strong salesperson?
• Chapter 11 may also be used for individuals with net worth greater than what amount?
• FASB 13 provides criteria to classify leases into which two accounting categories?
• When does the lessee accept equipment in a lease?
• UCC Article 9 covers:
• Which item is a documentation barrier in building vendor relationships?
• Which statement describes a capital lease?
• Which of the following is an advantage of securitization?
• Which of the following is an advantage of discounting?
• Under the bankruptcy scenario discussed, which party is more likely to have rights to the equipment if the transaction is not a lease?
• Bargain Purchase Option refers to which scenario?
• At-Risk in leasing means which?
• What should be included on vendor invoice?
• What is cross default in a lease document?
• Which could be an influencer that introduces prospects?
• Under implied warranties in a lease, which party typically benefits from the 'quiet possession' concept?
• Which lease type is commonly used for vehicles and may be treated as a true lease for tax purposes despite a residual value guarantee?
• For tax purposes, which classification is used to denote a lease that is considered a true lease?
• Which level of financial statement preparation involves inquiry and analysis?
• Which statement best describes Master Lease components?
• Which term refers to the financing by a funder in one country for a lessee in another country?
• Profit on Sale is defined as which ratio?
• UCC Article 2 covers:
• In what year was FASB 13 issued?
• What is a recommended way to build relationships with banks?
• Which of the following is an advantage of discounting?
• Which funding approach provides control over underwriting and funding?
• What is the Primary sales tool for a salesperson?
• Which statement describes a purpose of UCC Article 2A?
• Where is a fixture filing recorded?
• How is the current ratio calculated?
• What is the primary purpose of FASB 13 in lease accounting?
• Which lease is on a qualified automobile, truck or trailer, which may be considered a true lease for federal income tax purposes even though it contains a clause which effectively guarantees the lessor the residual value?
• Under IRS 55-540, leases are defined as what for tax purposes?
• The Philadelphia Plan’s financing mechanism used equipment trusts to fund which assets?
• What is a key characteristic of Article 2A as described in the material?
• Which factor indicates a company is doing business in another state?
• Which statement best describes a true lease in relation to ownership?
• Full Disclosure financial statements commonly include which feature?
• How is a captive financing entity defined?
• Which of the following is an advantage of Equity/Debt funding?
• Conflicts of Law describes:
• What is the best way to certify signers for a corporate party?
• The Quick Ratio is also known as the Acid Test. Which label reflects this?
• In the selling process, what is typically done to begin contact with potential customers?
• Which of the following is a characteristic of a strong salesperson?
• Within how many days may payments received around bankruptcy notice need to be returned to the bankruptcy court?
• Which option lists the correct four P's of marketing?
• In budgeting, which statement about Cost of Capital is true?
• What is Residual Value?
• Which activity would likely justify registration as a foreign corporation if performed regularly in the state?
• Under UCC Article 2, implied warranties may be excluded by:
• Which description best fits the lease legal definition as described?
• What does a Choice of Law clause designate?
• What defines a Direct Finance Lease?
• In a single investor lease, the participants are:
• Indirect Selling is described as which of the following?
• Which personal asset cannot be garnished?
• Where do you file UCC-1 financing statement when the lessee is involved?
• What best describes a Closed End Lease?
• Which is a key element of Situational Analysis?
• UCC Article 10 in California corresponds to which UCC Article?
• Placed In Service means the asset is?
• Direct Finance Lease is defined as which of the following statements?
• Which financing method is associated with retaining the customer relationship?
• Which of the following is an advantage of discounting?
• In many capital leases, the purchase option price is typically described as what?
• Which of the following is a form of vendor fraud?
• Chapter 12 is a reorganization bankruptcy for which group?
• Stipulated Loss is defined as?
• Which option correctly identifies IRS Section 38?
• Which of the following best describes the budget creation process?
• Which corporate form is not taxed on a personal basis?
• In the marketing mix, Place refers to:
• In lease accounting, which is a primary classification used to describe the lessee's use of the asset?
• A debt-to-equity ratio around 7:1 for lessors indicates which of the following?
• According to the material, how many owners are required in a LLC?
• In bankruptcy, the bar date is the deadline to file which of the following?
• Fair Market Value is defined as?
• Which item is excluded from the Quick Ratio calculation?
• Budget should be aligned with which part of the organization?
• How many owners are required in a LLC according to the material?
• Which statement best describes Promotion?
• What does an Assignment clause typically do in a lease?
• Where does a Mission Statement belong in the plan?
• Under FASB 13, a high present value of minimum lease payments relative to fair market value indicates which classification?
• In the context of Stream Rate, which statement is true?
• In UNL framework, what is a recourse arrangement?
• Which statement is NOT correct about the Philadelphia Plan as described?
• Which option is an influencer that could introduce prospects?
• In a third party lease, what is the defining characteristic?
• Progress Payment refers to payments required by an equipment vendor or manufacturer prior to delivery of equipment to be leased. The progress payments lessen the outlay necessary for the vendor to purchase the equipment or the manufacturer to build the equipment and it adds an economic penalty if an order is cancelled mid-stream. Which term describes these payments?
• What is the CLFP's stance on spiffs and rebates?
• What does a summons typically accompany?
• What is the primary responsibility of the collection department in a leasing company?
• For how long is a UCC financing statement generally effective?
• Which statement best describes a Finance Lease?
• What is the effect of perfecting a security interest under UCC Article 9?
• Under which chapters can a debtor assume or reject a true lease?
• What is a Master Lease?
• Which phrase best describes the iterative nature of the budget creation process?
• Which statement best defines a net lease?
• The legal definition of a lease is described as:
• Which clause requires continued payments despite events like disasters or equipment failure?
• Fixture filings establish priority against encumbrances on what property?
• Which of the following is an advantage of securitization related to balance sheet treatment?
• Which of the following statements about the current ratio interpretation is true?
• What does AMT stand for?
• Which statement defines a lease?
• Under Article 2A, how are warranties described as being treated when conspicuous language waives them?
• Which statement defines the Assumptive Close?
• What term denotes personal property?
• Residual/Unguaranteed Residual is defined as which of the following?
• Which of the following is NOT listed as an influencer who could introduce prospects?
• Statutory law is best described as:
• Market Summary is another name for which concept?
• Under a Waiver of Defense Clause, to whom does the lessee make payments?
• Which statement best describes case law?
• Who signs a Landlord Waiver?
• What characterizes a Net Lease?
• What are common reserve targets?
• Which asset pool requirement is noted as a consideration in securitization?
• Which statement best characterizes an operating lease?
• Which lease is also referred to as a full-service lease?
• Which statement about Place is true?
• Regarding Lease vs. Buy analysis, which statement is true?
• Name a form of Vendor Fraud?
• In the context of key management, which concept is considered important?
• A Full Payout Lease is defined as:
• Which method leads to increased revenue?
• Which statement best describes the difference between financial statements and tax returns?
• Which of the following is commonly listed as a secondary collector responsibility?
• Which of the following is a legal lease classification?
• In a discounting arrangement, which statement about who remains as lessor of record is true?
• In the early independent leasing model, what happened to rail cars at the end of the lease term?
• Direct Selling is best described as which of the following?
• Which of the following is listed as a market research source?
• In discounting, which sequence describes the transaction?
• Which lease type is described as a capital lease from the lessor's perspective that gives rise to manufacturer's or dealer's profit for the lessor?
• Which statement is NOT considered a key element of a lease transaction?
• What is Money Over Money?
• To obtain a PMSI on equipment, within how many days must the UCC financing statement be filed?
• Which of the following is not a disadvantage of Equity/Debt funding?
• Which statement contrasts express warranties with implied warranties?
• Where is a UCC financing statement typically filed?
• What is unique about Reviewed statements?
• What is Marketing?
• Regulatory Law is defined as:
• Which of the following is a listed influencer that could introduce prospects?
• Debt to Equity ratio measures which of the following?
• Which of the following is a Lease vs Buy variable?
• In multi-lease scenarios, what is the typical effect of a default on one lease?
• Relief of Stay: which party files to request removal of the Automatic Stay?
• Which of the following is NOT an Upfront Monies item?
• In early leasing, which factor best describes a true lease regarding ownership?
• Which statement best describes asset securitization?
• The Statute of Wares is associated with leasing personal property in which year?
• In a discounting scenario, who owns the equipment?
• Which of the following is a method to enhance credit?
• Which statement best describes a Leveraged Lease?
• Which party is primarily responsible for taxes under a Tax Indemnity clause?
• What is Chapter 11 used for?
• A key budget concept is that the budget should be in sync with what?
• Which statement best describes a Master Lease's separate schedule?
• If you forget to file a Landlord Waiver and need access to equipment in default, what should you do?
• With whom collections matters should be discussed?
• Relief of Stay filings are commonly requested by which party?
• Which of the following is a disadvantage of securitization?
• Which clause is primarily about the governing law of the contract?
• What does Tax Indemnity require regarding taxes?
• What is Rental Agreement?
• Which of the following is an example of structuring a deal to win by a True lease where the client pays amount due?
• What is Article 2A primarily about?
• Which statement best defines a lease?
• Which item is NOT a stated benefit to the lessor under UCC Article 2A?
• How is Outsourcing viewed in the leasing industry?
• Which factor is included in Lease vs Buy variable considerations?
• Which statement is NOT a characteristic of an operating lease under FASB 13?
• Which of the following is listed as a Promotion characteristic?
• What are the most important Acts of Default in a lease?
• Which of the following best describes IRS Section 179 in leasing?
• GAAS stands for what?
• Which lease type triggers FASB 13 accounting requirements?
• Under the Statute of Frauds, which statement is true?
• What happens under an Acceleration clause in default?
• Which of the following is a method to enhance credit that involves another party sharing obligation?
• A lease in which the lessor provides services such as maintenance and care of leased property. The cost of such service(s) may be built into the lease or it may be paid under a separate maintenance agreement that the lessee was required to purchase. Which term best fits this description?
• Which tax lease classification is also known as a non true lease or conditional sale?
• The Quick Ratio is defined as which formula?
• ASC 840 refers to which accounting standard?
• Chapter 13 is a reorganization for which group?
• What should be avoided when submitting a deal to funding sources?
• When evaluating ROE, it should be interpreted in the context of which factor?
• Among the listed benefits, which is typically enhanced by captive financing?
• Which item is NOT a key element of a Marketing Plan?
• In the budget creation process, what step follows the initial department submission?
• Placed in Service means which of the following?
• Which organization is listed among market research sources?
• The two accounting lease classifications listed are Operating and which other?
• Return on Equity (ROE) is calculated as which ratio?
• Which of the following is listed as an example of Promotion characteristics?
• What is the Year 1 MACR percentage for a 5-year class asset?
• Lease Intended As Security is best described as what?
• What is a primary purpose of a lessor/vendor relationship?
• Which statement about PMSI qualifications is true?
• What is unique about Audited statements?
• Which item is NOT a primary objective of the collection department?
• Which of the following is an example of an implied warranty?
• Which statement best describes Direct Selling compared to Indirect Selling?
• What does UNL stand for?
• Which is a primary benefit of a captive financing arrangement?
• In a vendor financing pool, funds are used to cover what?
• Which is the lowest level of financial statement preparation?
• Which statement about acceptance in a lease is true?
• To determine whether a PMSI or a blanket lien prevails, which factors should be analyzed?
• Which is a gross lease traditionally for aircraft or marine vessels in which the lessor provides bundled services such as the payment of property taxes, insurance, maintenance costs, and provisions necessary to operate the craft (e.g., personnel, fuel, etc.)?
• Lease Intended As Security describes what?
• How does AMT relate to regular tax?
• Which is a source for researching a market?
• Are UCC 9 filings strictly required for leases?
• When evaluating financials, which type of statements is it sensible to also require tax returns?
• Soft Costs refer to which of the following?
• What happens if a sale is not conducted commercially reasonable?
• What term describes the provision of leasing or financing by a funder in one country for a lessee or borrower in another country, subject to tariffs?
• The Current Ratio is defined as which formula?
• Which statement best describes UCC Article 2A?
• Which factor contributed to the lease resurgence in the 1950s?
• In the early phase of Independent Leasing, who typically retained title to the leased assets?