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. The payout ratio






2. Equivalent Tax Deduction






3. Book Value (of company stock)






4. Working Capital






5. Domains of a CFP






6. Net Investment Income






7. Debt to Equity ratio






8. Present value of a Bond






9. Types of Understanding Responses Associated With Active Listening






10. Equivalent Tax Credit






11. Holding Period Return






12. Savings Ratio






13. Cash Ratio






14. Times Interest Earned






15. After-tax Yield






16. Quick Ratio (aka Acid test)






17. Social Styles






18. Total Debt to Equity ratio






19. Solvency Ratio






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






21. Net After Tax Profit Margin






22. Current Ratio






23. Types of Leading Responses






24. Opportunities in Financial Planning






25. Assets to Equity ratio






26. financial life cycle






27. PEG ratio






28. Sustainable Growth Rate






29. P/E ratio






30. 'normal' ratio






31. After-tax Return






32. Debt Service Ratio






33. Liquidity Ratio






34. ROE (Return On Equity)






35. The retention ratio






36. Major CFP Planning Areas






37. aka Net Income






38. Attributes of Effective Advisor communiations






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






40. Asset Turnover Ratio






41. Gross Investment income






42. Net Cash Flow






43. Current Yield of a bond


44. EBIT






45. CFP Ethical principles






46. financial planning pyramid