Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. ABA
  5. CTFA

ABA CTFA Exam
Certified Trust and Financial Advisor (CTFA) (Page 17 )

Updated On: 1-Feb-2026
Page 17 of 91
PDF with 895 Questions

One advantage of a financial lease is that:

  1. It has a shorter maturity than term loans
  2. It never appears as a liability on the balance sheet
  3. It eliminate the needs to make periodic payments
  4. It provides a way to indirectly depreciate land

Answer(s): D



The type of lease that includes a third party, a lender, is called a(n):

  1. Sale and leaseback
  2. Direct leasing arrangement
  3. Leveraged lease
  4. Operating lease

Answer(s): C



A conventional revolving credit agreement allows:

  1. To borrow a fixed amount for the entire commitment period
  2. To borrow for a short-period with a right to renew the loan during the commitment period
  3. To possibly include a provision to convert the credit agreement into a term loan contract at maturity
  4. All of the above

Answer(s): D



A way to analyze whether debt or lease financing would be preferable is to:

  1. Compare the net present values under each alternative, using the cost of capital as the discount rate
  2. Compare the net present values under each alternative, using the after-tax cost of borrowing as the discount rate
  3. Compare the payback periods for each alternative
  4. Compare the effective interest costs involved for each alternative

Answer(s): B



The principal reason for the existence of leasing is that:

  1. Intermediate-term loans are difficult to obtain
  2. This is a type of financing unaffected by changes in tax law
  3. Companies, financial institutions, and individuals derive different benefits from owning
  4. Leasing is a renewable source of intermediate-term funds

Answer(s): C



Viewing page 17 of 91
Viewing questions 81 - 85 out of 895 questions



Post your Comments and Discuss ABA CTFA exam prep with other Community members:

Join the CTFA Discussion