Test your basic knowledge |

CFP: Certified Financial Planner

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. Equivalent Tax Credit






2. Major CFP Planning Areas






3. Assets to Equity ratio






4. aka Net Income






5. Liquidity Ratio






6. EBIT






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