Free CHFP Exam Braindumps (page: 43)

Page 43 of 78

Lessor is:

  1. An entity who does not own an asset that leased out.
  2. An entity who owns an asset that is then leased out.
  3. An entity who owns a debt that is used to lease out.
  4. An entity who does not own a debt that is used to lease out.

Answer(s): B



An entity that negotiates the use of another's asset via a lease is called Lessee.

  1. True
  2. False

Answer(s): A



A lease that lasts shorter than the useful life of the leased asset, typically one year or less and can be canceled any time without penalty refers to:

  1. Decision lease
  2. Capital lease
  3. Operating lease
  4. None of the above

Answer(s): C



A lease that lasts for an extended period, up to the life of the leased asset and cannot be cancelled without penalty refers to:

  1. Decision lease
  2. Principal lease
  3. Operating lease
  4. Capital lease

Answer(s): D



Page 43 of 78



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