Test your basic knowledge |

CFP: Certified Financial Planner

  • Answer 46 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Equivalent Tax Credit

2. Major CFP Planning Areas

3. Assets to Equity ratio

4. aka Net Income

5. Liquidity Ratio


7. Net Investment Income

8. Current Ratio

9. financial life cycle

10. Cash Ratio

11. Times Interest Earned

12. After-tax Yield

13. Book Value (of company stock)

14. Attributes of Effective Advisor communiations

15. Total Debt to Equity ratio

16. The retention ratio

17. Domains of a CFP

18. After-tax Return

19. The payout ratio

20. Savings Ratio

21. Arithmetic Mean Return; T = Terminal period; good for comparing different investments

22. Sustainable Growth Rate

23. Net Cash Flow

24. Real Return (inflation adjusted); NR = Nominal Return; CCL = Change in Cost of Living (inflation rate)

25. Net After Tax Profit Margin

26. Types of Leading Responses

27. Gross Investment income

28. Quick Ratio (aka Acid test)

29. Debt Service Ratio

30. PEG ratio

31. financial planning pyramid

32. Asset Turnover Ratio

33. Working Capital

34. ROE (Return On Equity)

35. Opportunities in Financial Planning

36. Social Styles

37. Types of Understanding Responses Associated With Active Listening

38. Holding Period Return

39. Current Yield of a bond

40. CFP Ethical principles

41. Present value of a Bond

42. Solvency Ratio

43. P/E ratio

44. 'normal' ratio

45. Equivalent Tax Deduction

46. Debt to Equity ratio