Clfp exam Study guides, Class notes & Summaries

CLFP EXAM, Financial and Tax Accounting for Leases Questions and Answers – Latest 2024/2025. What is a primary goal of the accounting profession? correct answerConsistent treatment of like transactions to allow clarity in presentation and consistency in interpretation of financial statements prepared by various individuals or entities. How did APB (Accounting Principals Board) fail? correct answerCreated Opinion #5 (Reporting of Leases in Financial Statements of Lessees) and Opinion #7 (Ac...

CLFP Exam Questions With 100% Correct Answers Latest 2024/2025 | Verified. Finance Lease - Correct Answer-As most frequently used, a net lease, which has its purpose the finance of the use of property for a major portion of the property's useful life. The term is typically used in reference to leases written by third part lessors. FASB 13 (1976) - Correct Answer-If meets any of criteria, will be capital lease 1.Automatic transfer of title 2. Bargain purchase option -cancellable term is gr...

What is Statutory Law? - Includes law enacted by legislative bodies such as state legislatures and US Congress. The Uniform Commercial Code or "UCC" is a body of the state statutory law. What is Regulatory Law? - Consists of regulations adopted by public bodies. Examples of regulatory law are regulations issued by the Internal Revenue Service (IRS) or the Securities Exchange Commission (SEC). Generally regulatory laws are not binding up the courts in the manner or statutory laws, but may ...

What is a Lease a document? - A lease is a basic document by which a lessor agrees to provide equipment or other personal property or rights to a lessees in return for rental payments. What are Lease Exhibits document? - Also referred to a "schedules" are used if the description of lease property is too lengthy to fit into the space allotted on the lease. Often wise to have lessee initial all exhibits. What is a Delivery & Acceptance (D&A) document? - Document signed by lessee indicating ...

CLFP Exam Questions With 100% Correct Answers Latest | Graded A+. A lease, which for tax purposes, fails to meet all of the tests for a conditional sales contract under IRS Revenue Ruling 55-540 and therefore entitles the lessor to qualify for the tax benefits of ownership and the lessee to claim the entire amount of the lease rental as a tax deduction Finance Lease - Correct Answer-As most frequently used, a net lease, which has its purpose the finance of the use of property for a major p...

CLFP EXAM - Financial and Tax Accounting for Leases -With 100% verified solutions

What is a primary goal of the accounting profession? - Consistent treatment of like transactions to allow clarity in presentation and consistency in interpretation of financial statements prepared by various individuals or entities. How did APB (Accounting Principals Board) fail? - Created Opinion #5 (Reporting of Leases in Financial Statements of Lessees) and Opinion #7 (Accounting for Leases in Financial Statements for Lessors) that ha different opinions and left lessors & lessees with co...

What is a Lease a document? - A lease is a basic document by which a lessor agrees to provide equipment or other personal property or rights to a lessees in return for rental payments. What are Lease Exhibits document? - Also referred to a "schedules" are used if the description of lease property is too lengthy to fit into the space allotted on the lease. Often wise to have lessee initial all exhibits. What is a Delivery & Acceptance (D&A) document? - Document signed by lessee indicating ...

What is Statutory Law? - Includes law enacted by legislative bodies such as state legislatures and US Congress. The Uniform Commercial Code or "UCC" is a body of the state statutory law. What is Regulatory Law? - Consists of regulations adopted by public bodies. Examples of regulatory law are regulations issued by the Internal Revenue Service (IRS) or the Securities Exchange Commission (SEC). Generally regulatory laws are not binding up the courts in the manner or statutory laws, but may ...

Helps avoid tax abuse by defining what is not a lease for tax purposes. - What is significant about IRS Revenue Ruling 55-540? Per IRS Revenue Ruling 55-540, what are the rules that if present prevent a transaction from being a lease for tax purposes? - 1). Any portion of the periodic payment is equity, 2.) lessee automatically acquires title upon making scheduled payments 3.) the total amount, which a lessee is required to be paid is an inordinately large portion of the total sum to buy...