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CPA Exam Prep - Lease Framework

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Created December 29, 2025

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Video Transcript

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If you remember this, leases become easy. What is the CPA exam really

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testing with lease classification? A. Math skills. B.

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Memorization. C. Legal form. D. Economic substance.

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Think... Last one. Correct! It is D, Economic substance.

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FAR asks: Is this a rental or a financed purchase? Every lease rule

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flows from that question. Follow for CPA concepts explained clearly.

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