CLP Lease Law, Tax, and Accounting 1

Question 1

Which UCC article governs the leasing of goods in the United States?

Accepted Answer

Article 2A

Answer

Article 1

Answer

Article 2

Answer

Article 9

Question 2

How is a capital lease typically reported on a lessee’s balance sheet under GAAP?

Accepted Answer

As both an asset and a liability

Answer

Only as a liability

Answer

Only as an expense

Answer

Not recorded at all

Question 3

Which of the following is a tax advantage of a true lease for the lessee?

Accepted Answer

Deductibility of lease payments

Answer

Accelerated depreciation

Answer

Capital gains treatment

Answer

Recognition of asset ownership

Question 4

What is the primary difference between a lease and a secured loan under UCC rules?

Accepted Answer

A lease provides usage rights without ownership.

Answer

A lease includes an interest rate.

Answer

A loan requires monthly rent.

Answer

A lease reduces credit risk.

Question 5

Which entity typically claims depreciation on leased equipment in a true lease?

Accepted Answer

Lessor

Answer

Lessee

Answer

Lender

Answer

Broker

Question 6

Which standard governs lease accounting for public companies in the U.S.?

Accepted Answer

ASC 842

Answer

FASB 13

Answer

IFRS 16

Answer

GAAP 203