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CFP: Certified Financial Planner

Subjects : certifications, cfp, business-skills

Instructions:

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. Net After Tax Profit Margin
current assets - current liabilities
Earnings After Taxes
Net Worth/Total Assets
EAT / Sales

2. Domains of a CFP
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
1 - the payout ratio
EGAD CIMP - Establish and define Relationship - Gather Information - Analyze and Evaluate Current Stauts - Develop Recommendations - Communicate Recommendations - Monitor Recommendations - Practice Professional Standards
(cash + marketable securities) / current liabilities

3. Current Yield of a bond

4. Arithmetic Mean Return; T = Terminal period; good for comparing different investments
Sales / Average Total Assets
EAT / Sales
(1/T)(r1+r2+...+rT)
Total Assets / Equity

5. Total Debt to Equity ratio
Sales / Average Total Assets
Total Liabilities / Equity
taxable interest - non-qual. divs - short-term cap. gains
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness

6. PEG ratio
driving - expressive - amiable - analytical
(Mortgage+Debt Repayment)/Net Income
Price Earnings Growth ratio; P/E divided by projected earnings growth
Sales / Average Total Assets

7. Cash Ratio
EGAD CIMP - Establish and define Relationship - Gather Information - Analyze and Evaluate Current Stauts - Develop Recommendations - Communicate Recommendations - Monitor Recommendations - Practice Professional Standards
(Mortgage+Debt Repayment)/Net Income
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
(cash + marketable securities) / current liabilities

8. After-tax Yield
Price/Earnings per share
Tax Free Yield/(1 - Tax Bracket)
Net Worth/Total Assets
Tax Deduction * marginal tax rate

9. financial planning pyramid
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence
Top: Retirement and Estate - Mid: Growing Investments - Bottom: Guarding Against Uncertainty (Insurance)
Continuing - Restatement of content - Reflection of feeling - Clarifying - Summarization
Explanatory - Interpretive - Reassuring - Suggestive

10. Net Cash Flow
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
assets less liabilities - divided by the number of shares of common stock of a company
Sources of Funds-Use of Funds or Money in- Money out
Total Long-term Debt / Equity

11. Sustainable Growth Rate
g = ROE X b - where b is equal to the retention ratio
Total Long-term Debt / Equity
dividends / earnings
Dollars of coupon interest per year/Bond's current market price

12. Gross Investment income
Earnings After Taxes
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
Tax Deduction * marginal tax rate
taxable interest - non-qual. divs - short-term cap. gains

13. Liquidity Ratio
Sales / Average Total Assets
1 - the payout ratio
(Liquid Assets/Total Current Debts=Liquid Assets/(Current Liabilities+Annual Loan Payments)
EBIT/I (Where I = Interest Expense)

14. Book Value (of company stock)
current assets / current liabilities
g = ROE X b - where b is equal to the retention ratio
assets less liabilities - divided by the number of shares of common stock of a company
Total Assets / Equity

15. The retention ratio
driving - expressive - amiable - analytical
Net Income/Equity
1 - the payout ratio
Total Long-term Debt / Equity

16. Real Return (inflation adjusted); NR = Nominal Return; CCL = Change in Cost of Living (inflation rate)
dividends / earnings
[(1+ NR) / (1 + CCL)] - 1
Total Assets / Equity
g = ROE X b - where b is equal to the retention ratio

17. Times Interest Earned
EBIT/I (Where I = Interest Expense)
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
Total Liabilities / Equity
driving - expressive - amiable - analytical

18. EBIT
Earnings After Taxes
Earnings Before Interest & Taxes
Tax Deduction * marginal tax rate
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure

19. Debt Service Ratio
Total Assets / Equity
(Coupon1 /2)/(1+YTM)/2?1 + (Coupon2 /2)/(1+YTM)/2?2 +...+ (CouponT /2)/(1+YTM)/2?n
(Mortgage+Debt Repayment)/Net Income
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness

20. Major CFP Planning Areas
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
current assets - current liabilities
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
(Mortgage+Debt Repayment)/Net Income

21. Types of Leading Responses
driving - expressive - amiable - analytical
(cash + marketable securities) / current liabilities
Price Earnings Growth ratio; P/E divided by projected earnings growth
Explanatory - Interpretive - Reassuring - Suggestive

22. Assets to Equity ratio
Total Liabilities / Equity
Total Assets / Equity
(current assets - inventory) / current liabilities
EGAD CIMP - Establish and define Relationship - Gather Information - Analyze and Evaluate Current Stauts - Develop Recommendations - Communicate Recommendations - Monitor Recommendations - Practice Professional Standards

23. Social Styles
driving - expressive - amiable - analytical
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
current assets - current liabilities
[(1+ NR) / (1 + CCL)] - 1

24. Present value of a Bond
(Coupon1 /2)/(1+YTM)/2?1 + (Coupon2 /2)/(1+YTM)/2?2 +...+ (CouponT /2)/(1+YTM)/2?n
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
(Liquid Assets/Total Current Debts=Liquid Assets/(Current Liabilities+Annual Loan Payments)
dividends / earnings

25. Equivalent Tax Credit
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
Tax Credit/marginal tax rate
Tax Deduction * marginal tax rate
(cash + marketable securities) / current liabilities

26. After-tax Return
Total Return (1 - tax bracket)
(Coupon1 /2)/(1+YTM)/2?1 + (Coupon2 /2)/(1+YTM)/2?2 +...+ (CouponT /2)/(1+YTM)/2?n
EGAD CIMP - Establish and define Relationship - Gather Information - Analyze and Evaluate Current Stauts - Develop Recommendations - Communicate Recommendations - Monitor Recommendations - Practice Professional Standards
Earnings After Taxes

27. Solvency Ratio
current assets - current liabilities
Net Worth/Total Assets
EBIT/I (Where I = Interest Expense)
(Mortgage+Debt Repayment)/Net Income

28. 'normal' ratio
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
Total Assets / Equity
(current assets - inventory) / current liabilities
P*(1+g)/(k-g) P=div per share divided by other div

29. Current Ratio
current assets / current liabilities
Earnings Before Interest & Taxes
Earnings After Taxes
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence

30. aka Net Income
Total Liabilities / Equity
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
EBIT/I (Where I = Interest Expense)
Earnings After Taxes

31. CFP Ethical principles
driving - expressive - amiable - analytical
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence
Net Cash Flow+Already Being Saved or Invested/Annual After Tax Income

32. Opportunities in Financial Planning
Total Long-term Debt / Equity
(Liquid Assets/Total Current Debts=Liquid Assets/(Current Liabilities+Annual Loan Payments)
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
Sources of Funds-Use of Funds or Money in- Money out

33. Net Investment Income
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
(current assets - inventory) / current liabilities
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
Sales / Average Total Assets

34. Savings Ratio
Sales / Average Total Assets
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
taxable interest - non-qual. divs - short-term cap. gains
Net Cash Flow+Already Being Saved or Invested/Annual After Tax Income

35. Working Capital
Price/Earnings per share
current assets - current liabilities
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
[(1+ NR) / (1 + CCL)] - 1

36. financial life cycle
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
[(1+ NR) / (1 + CCL)] - 1
(P1 + D - P0)/P0
taxable interest - non-qual. divs - short-term cap. gains

37. The payout ratio
dividends / earnings
[(1+ NR) / (1 + CCL)] - 1
(cash + marketable securities) / current liabilities
Price Earnings Growth ratio; P/E divided by projected earnings growth

38. Types of Understanding Responses Associated With Active Listening
Continuing - Restatement of content - Reflection of feeling - Clarifying - Summarization
(1/T)(r1+r2+...+rT)
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
EBIT/I (Where I = Interest Expense)

39. Quick Ratio (aka Acid test)
Top: Retirement and Estate - Mid: Growing Investments - Bottom: Guarding Against Uncertainty (Insurance)
Total Long-term Debt / Equity
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
(current assets - inventory) / current liabilities

40. Attributes of Effective Advisor communiations
P*(1+g)/(k-g) P=div per share divided by other div
Total Return (1 - tax bracket)
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
Total Long-term Debt / Equity

41. Asset Turnover Ratio
g = ROE X b - where b is equal to the retention ratio
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
Continuing - Restatement of content - Reflection of feeling - Clarifying - Summarization
Sales / Average Total Assets

42. Equivalent Tax Deduction
Total Long-term Debt / Equity
Tax Credit/marginal tax rate
Total Liabilities / Equity
driving - expressive - amiable - analytical

43. Holding Period Return
Explanatory - Interpretive - Reassuring - Suggestive
(P1 + D - P0)/P0
current assets - current liabilities
g = ROE X b - where b is equal to the retention ratio

44. Debt to Equity ratio
Net Worth/Total Assets
Price/Earnings per share
Total Long-term Debt / Equity
Net Cash Flow+Already Being Saved or Invested/Annual After Tax Income

45. ROE (Return On Equity)
Explanatory - Interpretive - Reassuring - Suggestive
Total Liabilities / Equity
current assets - current liabilities
Net Income/Equity

46. P/E ratio
Continuing - Restatement of content - Reflection of feeling - Clarifying - Summarization
current assets / current liabilities
taxable interest - non-qual. divs - short-term cap. gains
Price/Earnings per share

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CFP: Certified Financial Planner

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3d Computer Modeling

Actionscript

Adobe Flash

Adobe Illustrator

Adobe Illustrator Shortcuts

Adobe Indesign Publishing

Adobe Photoshop CS 2 - CS 3

Adobe Photoshop CS 5

Adobe Photoshop CS 5 Keyboard Shortcuts

Adobe Photoshop Graphic Design

Adobe Photoshop Tools And Commands

Adobe Premiere Keyboard Shortcuts

Adobe Premiere Pro

After Effects Keyboard Shortcuts

Agile Development

Agile Scrum Methodology

Ajax

Android Programming

Animation

Asp.net Programming