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. financial life cycle






2. The payout ratio






3. Social Styles






4. Current Ratio






5. Debt to Equity ratio






6. CFP Ethical principles






7. Solvency Ratio






8. financial planning pyramid






9. The retention ratio






10. Present value of a Bond






11. Book Value (of company stock)






12. After-tax Yield






13. Opportunities in Financial Planning






14. Types of Leading Responses






15. Current Yield of a bond






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






17. Equivalent Tax Deduction






18. Net Cash Flow






19. PEG ratio






20. Savings Ratio






21. 'normal' ratio






22. Net Investment Income






23. Holding Period Return






24. Equivalent Tax Credit






25. P/E ratio






26. ROE (Return On Equity)






27. Times Interest Earned






28. Types of Understanding Responses Associated With Active Listening






29. Asset Turnover Ratio






30. Liquidity Ratio






31. After-tax Return






32. Cash Ratio






33. Attributes of Effective Advisor communiations






34. Working Capital






35. Assets to Equity ratio






36. aka Net Income






37. Net After Tax Profit Margin






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






39. Gross Investment income






40. Total Debt to Equity ratio






41. Domains of a CFP






42. Debt Service Ratio






43. EBIT






44. Major CFP Planning Areas






45. Sustainable Growth Rate






46. Quick Ratio (aka Acid test)