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. P/E ratio

2. ROE (Return On Equity)

3. Current Ratio

4. Times Interest Earned

5. Net Cash Flow

6. Total Debt to Equity ratio

7. Savings Ratio

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

9. Book Value (of company stock)

10. financial life cycle

11. financial planning pyramid

12. Current Yield of a bond

13. Social Styles

14. CFP Ethical principles

15. Debt Service Ratio

16. 'normal' ratio

17. Cash Ratio

18. Major CFP Planning Areas

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

20. Debt to Equity ratio

21. Solvency Ratio

22. PEG ratio

23. Gross Investment income

24. Present value of a Bond

25. aka Net Income

26. Equivalent Tax Credit

27. Domains of a CFP

28. EBIT

29. Net Investment Income

30. Liquidity Ratio

31. Holding Period Return

32. Equivalent Tax Deduction

33. Sustainable Growth Rate

34. Attributes of Effective Advisor communiations

35. After-tax Yield

36. Working Capital

37. After-tax Return

38. The payout ratio

39. Types of Understanding Responses Associated With Active Listening

40. Assets to Equity ratio

41. Net After Tax Profit Margin

42. Quick Ratio (aka Acid test)

43. Asset Turnover Ratio

44. Types of Leading Responses

45. Opportunities in Financial Planning

46. The retention ratio