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AFIP BASIC CERTIFICATION 2025/2026 EXAM
QUESTIONS AND DETAILED CORRECT ANSWERS
WELL ERABORATED FOR GUARANTEED PASS
TOP-RATED A+.
AFIP
Achieve your AFIP Basic Certification with confidence using this
comprehensive collection of exam-focused questions and detailed
answers. This resource is structured to efficiently reinforce your
understanding of essential funeral service laws, operations, and
standards. Invest in your professional future and streamline your exam
preparation with this indispensable study aid.
(True/False): Ignorance of the law will shield you from
liability if you are noncompliant. ...... ANSWER .......
False
(True/False): As an F&I manager working directly with
customers, you are individually responsible for your actions
and what you say to each customer. ...... ANSWER .......
True
In a typical credit transaction the (bank)/(dealer) is the
creditor. ...... ANSWER ....... The dealer is the creditor
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What is a contract? ...... ANSWER ....... A contract is
an agreement involving a promise or set of promises that
the law enforces or protects.
The formation of a contract requires three elements: ......
ANSWER ....... 1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: ...... ANSWER .......
1. An expression of a promise or commitment (intent) to
enter a contract
2. An expression of definite and certain terms
3. The communication of the offer to the offeree (in this
case, the customer)
An offer may be terminated by: ...... ANSWER ....... 1.
An act of the parties
2. The operation of law
There are three criteria for the acceptance of an offer: ......
ANSWER ....... 1. The offer is accepted by one who is
entitled to accept
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2. The acceptance takes the proper form and is timely
3. The terms of acceptance reflect closely the terms of the
offer and, therefore, do not amount to a counteroffer
The Statute of Frauds ...... ANSWER ....... Generally
requires that all contracts involving the sale of goods for a
price of $500 or more be in writing.
The Statute of Frauds requires a written contract for the sale
of goods for a price of _______ or more. ...... ANSWER
....... $500
What is required in order for the parties (the individuals
entering into the contract) to have "legal capacity?" ......
ANSWER ....... The parties to the contract must be of
legal age under the laws of the state in which the contract
is written.
Criteria that can block the formation of a valid contract:
...... ANSWER ....... 1. The need for a written
agreement under the Statute of Frauds and certain
provisions of the Uniform Commercial Code (U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
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What is "consideration" as it applies to a contract? ......
ANSWER ....... The requirement that each party to the
contract receives something of value in exchange for what
is given.
Finance Charge ...... ANSWER ....... The Finance
Charge is the resulting dollar amount calculated by
applying the Annual Percentage Rate to the Amount
Financed over the term of the contract.
How the Itemization of Amount Financed is completed
...... ANSWER ....... 1. Cash Price (Agreed to price of
vehicle)
2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-
Downpayment)
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
4 Key Sections of an installment sale contract ......
ANSWER ....... Section A) General Information --
Identifies the parties to the agreement.
AFIP BASIC CERTIFICATION 2025/2026 EXAM
QUESTIONS AND DETAILED CORRECT ANSWERS
WELL ERABORATED FOR GUARANTEED PASS
TOP-RATED A+.
AFIP
Achieve your AFIP Basic Certification with confidence using this
comprehensive collection of exam-focused questions and detailed
answers. This resource is structured to efficiently reinforce your
understanding of essential funeral service laws, operations, and
standards. Invest in your professional future and streamline your exam
preparation with this indispensable study aid.
(True/False): Ignorance of the law will shield you from
liability if you are noncompliant. ...... ANSWER .......
False
(True/False): As an F&I manager working directly with
customers, you are individually responsible for your actions
and what you say to each customer. ...... ANSWER .......
True
In a typical credit transaction the (bank)/(dealer) is the
creditor. ...... ANSWER ....... The dealer is the creditor
,2|Page
What is a contract? ...... ANSWER ....... A contract is
an agreement involving a promise or set of promises that
the law enforces or protects.
The formation of a contract requires three elements: ......
ANSWER ....... 1. Offer
2. Acceptance
3. Consideration
An offer consists of three elements: ...... ANSWER .......
1. An expression of a promise or commitment (intent) to
enter a contract
2. An expression of definite and certain terms
3. The communication of the offer to the offeree (in this
case, the customer)
An offer may be terminated by: ...... ANSWER ....... 1.
An act of the parties
2. The operation of law
There are three criteria for the acceptance of an offer: ......
ANSWER ....... 1. The offer is accepted by one who is
entitled to accept
,3|Page
2. The acceptance takes the proper form and is timely
3. The terms of acceptance reflect closely the terms of the
offer and, therefore, do not amount to a counteroffer
The Statute of Frauds ...... ANSWER ....... Generally
requires that all contracts involving the sale of goods for a
price of $500 or more be in writing.
The Statute of Frauds requires a written contract for the sale
of goods for a price of _______ or more. ...... ANSWER
....... $500
What is required in order for the parties (the individuals
entering into the contract) to have "legal capacity?" ......
ANSWER ....... The parties to the contract must be of
legal age under the laws of the state in which the contract
is written.
Criteria that can block the formation of a valid contract:
...... ANSWER ....... 1. The need for a written
agreement under the Statute of Frauds and certain
provisions of the Uniform Commercial Code (U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
, 4|Page
What is "consideration" as it applies to a contract? ......
ANSWER ....... The requirement that each party to the
contract receives something of value in exchange for what
is given.
Finance Charge ...... ANSWER ....... The Finance
Charge is the resulting dollar amount calculated by
applying the Annual Percentage Rate to the Amount
Financed over the term of the contract.
How the Itemization of Amount Financed is completed
...... ANSWER ....... 1. Cash Price (Agreed to price of
vehicle)
2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-
Downpayment)
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
4 Key Sections of an installment sale contract ......
ANSWER ....... Section A) General Information --
Identifies the parties to the agreement.
