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. 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