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ABA CTFA Practice Test - Questions Answers, Page 23

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Question 221

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The __________ decision involves determining the appropriate make-up of the righthand side of the balance sheet.

asset management
asset management
Financing
Financing
Investment Capital budgeting
Investment Capital budgeting
Suggested answer: B
asked 16/09/2024
Matthew Cole
36 questions

Question 222

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Which of the following statements is correct regarding profit maximization as the primary goal?

Profit maximization considers the risk level
Profit maximization considers the risk level
Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits.
Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits.
Profit maximization does consider the impact on individual shareholder's EPS
Profit maximization does consider the impact on individual shareholder's EPS
Profit maximization is concerned more with maximizing net income than the stock price
Profit maximization is concerned more with maximizing net income than the stock price
Suggested answer: D
asked 16/09/2024
Vilfride Lutumba
41 questions

Question 223

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In negotiating car prices, choosing among various makes, models, and options can make comparison difficult. You can check one of the popular price guides to research used car prices. What is that guide?

National Automobile Dealers Association
National Automobile Dealers Association
National Automobile manufacturer Association
National Automobile manufacturer Association
National Automobile vendor Association
National Automobile vendor Association
None of these
None of these
Suggested answer: A
asked 16/09/2024
Christophe Troessaert
37 questions

Question 224

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It is an agreement to purchase an automobile that states the offering price and all conditions of the offer; when signed by the buyer and seller, the contract legally binds them to its terms.

Financing Contract
Financing Contract
Sales Contract
Sales Contract
Car Financing Agreement
Car Financing Agreement
Dealer's Agreement
Dealer's Agreement
Suggested answer: B
asked 16/09/2024
Mustaqueahmed Ghanchibhai
42 questions

Question 225

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Once the dealer accepts your offer, you complete the purchase transaction and take the delivery of the car. If you are not paying cash for the car, you can arrange financing:

Through a consumer finance company
Through a consumer finance company
At your bank
At your bank
A credit union
A credit union
All of these
All of these
Suggested answer: D
asked 16/09/2024
Victor Ogbonna
34 questions

Question 226

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Lease is:

An arrangement in which the lessee receives the use of a car (or the asset) in exchange for making monthly lease payments over a specified period
An arrangement in which the lessee receives the use of a car (or the asset) in exchange for making monthly lease payments over a specified period
An arrangement in which the lessee receives the use of a car (or the asset) in exchange for making weekly lease payments
An arrangement in which the lessee receives the use of a car (or the asset) in exchange for making weekly lease payments
An arrangement in which the lessee receives the use of a car (or the asset) in exchange for making Quarterly lease payments over a specified period
An arrangement in which the lessee receives the use of a car (or the asset) in exchange for making Quarterly lease payments over a specified period
An arrangement in which the lessee receives the use of a car (or the asset) in exchange for making monthly lease payments
An arrangement in which the lessee receives the use of a car (or the asset) in exchange for making monthly lease payments
Suggested answer: A
asked 16/09/2024
Danilo Romelli
49 questions

Question 227

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The most popular form of automobile lease is the one in which at the end of its term the lessee simply turns in the car (assuming the preset mileage limit has not been exceeded and the car hasn't abused)

Close-end lease
Close-end lease
Open-end lease
Open-end lease
Walk away lease
Walk away lease
Both A and C
Both A and C
Suggested answer: D
asked 16/09/2024
mahdis khaledi
46 questions

Question 228

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Open-end lease is:

An automobile lease under which the estimated actual value of the car is used to determine lease payments
An automobile lease under which the estimated actual value of the car is used to determine lease payments
If the car is worth less than this value at the end of the lease, the lessee must pay the difference
If the car is worth less than this value at the end of the lease, the lessee must pay the difference
If the car is worth less than this value at the end of the lease, the lesser must pay the difference
If the car is worth less than this value at the end of the lease, the lesser must pay the difference
An automobile lease under which the estimated residual value of the car is used to determine lease payments
An automobile lease under which the estimated residual value of the car is used to determine lease payments
Suggested answer: B, D
asked 16/09/2024
Myratgeldi Bekdurdyyev
46 questions

Question 229

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A commonly sited benefit of leasing is absence of down payment. However, today most leases require a ''capital cost reduction'' which is the down payment that lowers the potential depreciation and therefore your monthly lease payments. You may be able to negotiate a lower capital cost reduction or find a lease that doesn't require one. The lease payment calculation is based on four variables. Which one of the following:

Capitalized cost
Capitalized cost
Forecast residual value
Forecast residual value
Money factor
Money factor
Lease date
Lease date
Suggested answer: D
asked 16/09/2024
Velmurugan P
42 questions

Question 230

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A good lease contract should clearly define what is considered unreasonable. In addition, most leases requires the lessee to pay a disposition fee:

Of about $50 to $250 when the car is returned
Of about $50 to $250 when the car is returned
Of about $200 to $250 when the car is returned
Of about $200 to $250 when the car is returned
Of about $150 to $250 when the car is returned
Of about $150 to $250 when the car is returned
Of about $1500 to $250 when the car is returned
Of about $1500 to $250 when the car is returned
Suggested answer: C
asked 16/09/2024
Pablo Magallanes
38 questions
Total 895 questions
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