SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CFP: Certified Financial Planner
Start Test
Study First
Subjects
:
certifications
,
cfp
,
business-skills
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
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
Sources of Funds-Use of Funds or Money in- Money out
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
Tax Deduction * marginal tax rate
2. After-tax Return
Total Return (1 - tax bracket)
(current assets - inventory) / current liabilities
(P1 + D - P0)/P0
Earnings After Taxes
3. Gross Investment income
(cash + marketable securities) / current liabilities
taxable interest - non-qual. divs - short-term cap. gains
Total Long-term Debt / Equity
Total Liabilities / Equity
4. Arithmetic Mean Return; T = Terminal period; good for comparing different investments
(1/T)(r1+r2+...+rT)
EAT / Sales
(Mortgage+Debt Repayment)/Net Income
Price/Earnings per share
5. Real Return (inflation adjusted); NR = Nominal Return; CCL = Change in Cost of Living (inflation rate)
(cash + marketable securities) / current liabilities
driving - expressive - amiable - analytical
1 - the payout ratio
[(1+ NR) / (1 + CCL)] - 1
6. financial life cycle
EAT / Sales
(Mortgage+Debt Repayment)/Net Income
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
Net Income/Equity
7. P/E ratio
Continuing - Restatement of content - Reflection of feeling - Clarifying - Summarization
(Mortgage+Debt Repayment)/Net Income
(Liquid Assets/Total Current Debts=Liquid Assets/(Current Liabilities+Annual Loan Payments)
Price/Earnings per share
8. Holding Period Return
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
(P1 + D - P0)/P0
Explanatory - Interpretive - Reassuring - Suggestive
Earnings Before Interest & Taxes
9. Current Yield of a bond
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
10. Sustainable Growth Rate
(1/T)(r1+r2+...+rT)
Earnings Before Interest & Taxes
Explanatory - Interpretive - Reassuring - Suggestive
g = ROE X b - where b is equal to the retention ratio
11. Debt to Equity ratio
P*(1+g)/(k-g) P=div per share divided by other div
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
Total Long-term Debt / Equity
g = ROE X b - where b is equal to the retention ratio
12. Net Cash Flow
Top: Retirement and Estate - Mid: Growing Investments - Bottom: Guarding Against Uncertainty (Insurance)
1 - the payout ratio
(P1 + D - P0)/P0
Sources of Funds-Use of Funds or Money in- Money out
13. Current Ratio
1 - the payout ratio
Total Return (1 - tax bracket)
current assets / current liabilities
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
14. After-tax Yield
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence
(current assets - inventory) / current liabilities
Tax Free Yield/(1 - Tax Bracket)
15. Net After Tax Profit Margin
EAT / Sales
Price/Earnings per share
Net Worth/Total Assets
Total Long-term Debt / Equity
16. Assets to Equity ratio
Dollars of coupon interest per year/Bond's current market price
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence
[(1+ NR) / (1 + CCL)] - 1
Total Assets / Equity
17. Book Value (of company stock)
(Coupon1 /2)/(1+YTM)/2?1 + (Coupon2 /2)/(1+YTM)/2?2 +...+ (CouponT /2)/(1+YTM)/2?n
assets less liabilities - divided by the number of shares of common stock of a company
1 - the payout ratio
driving - expressive - amiable - analytical
18. EBIT
current assets / current liabilities
(P1 + D - P0)/P0
Earnings Before Interest & Taxes
Price/Earnings per share
19. The retention ratio
Top: Retirement and Estate - Mid: Growing Investments - Bottom: Guarding Against Uncertainty (Insurance)
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
1 - the payout ratio
taxable interest - non-qual. divs - short-term cap. gains
20. Major CFP Planning Areas
Top: Retirement and Estate - Mid: Growing Investments - Bottom: Guarding Against Uncertainty (Insurance)
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
Tax Credit/marginal tax rate
21. Liquidity Ratio
Tax Free Yield/(1 - Tax Bracket)
Price/Earnings per share
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence
(Liquid Assets/Total Current Debts=Liquid Assets/(Current Liabilities+Annual Loan Payments)
22. ROE (Return On Equity)
Net Income/Equity
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
(Mortgage+Debt Repayment)/Net Income
Continuing - Restatement of content - Reflection of feeling - Clarifying - Summarization
23. Present value of a Bond
Total Return (1 - tax bracket)
(Coupon1 /2)/(1+YTM)/2?1 + (Coupon2 /2)/(1+YTM)/2?2 +...+ (CouponT /2)/(1+YTM)/2?n
g = ROE X b - where b is equal to the retention ratio
(Liquid Assets/Total Current Debts=Liquid Assets/(Current Liabilities+Annual Loan Payments)
24. PEG ratio
current assets - current liabilities
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
Price Earnings Growth ratio; P/E divided by projected earnings growth
Tax Free Yield/(1 - Tax Bracket)
25. Cash Ratio
Price/Earnings per share
(cash + marketable securities) / current liabilities
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
EGAD CIMP - Establish and define Relationship - Gather Information - Analyze and Evaluate Current Stauts - Develop Recommendations - Communicate Recommendations - Monitor Recommendations - Practice Professional Standards
26. Types of Understanding Responses Associated With Active Listening
Continuing - Restatement of content - Reflection of feeling - Clarifying - Summarization
1 - the payout ratio
current assets / current liabilities
(Mortgage+Debt Repayment)/Net Income
27. Debt Service Ratio
g = ROE X b - where b is equal to the retention ratio
Earnings Before Interest & Taxes
(Mortgage+Debt Repayment)/Net Income
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
28. Asset Turnover Ratio
Sales / Average Total Assets
(current assets - inventory) / current liabilities
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
Net Worth/Total Assets
29. Domains of a CFP
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
Price Earnings Growth ratio; P/E divided by projected earnings growth
Total Assets / Equity
EGAD CIMP - Establish and define Relationship - Gather Information - Analyze and Evaluate Current Stauts - Develop Recommendations - Communicate Recommendations - Monitor Recommendations - Practice Professional Standards
30. Total Debt to Equity ratio
Total Liabilities / Equity
(Liquid Assets/Total Current Debts=Liquid Assets/(Current Liabilities+Annual Loan Payments)
Total Assets / Equity
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
31. Types of Leading Responses
EBIT/I (Where I = Interest Expense)
Explanatory - Interpretive - Reassuring - Suggestive
dividends / earnings
Dollars of coupon interest per year/Bond's current market price
32. financial planning pyramid
Top: Retirement and Estate - Mid: Growing Investments - Bottom: Guarding Against Uncertainty (Insurance)
(P1 + D - P0)/P0
P*(1+g)/(k-g) P=div per share divided by other div
early career (age 25 or younger to age 35) - career development (age 35 to age 50) - peak accumulation (age 50 to ages 58-62) - preretirement (3 to 6 years prior to planned retirement) - retirement (ages 62-66 and older)
33. Equivalent Tax Deduction
Tax Credit/marginal tax rate
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
(Liquid Assets/Total Current Debts=Liquid Assets/(Current Liabilities+Annual Loan Payments)
Sales / Average Total Assets
34. Savings Ratio
Tax Credit/marginal tax rate
Dollars of coupon interest per year/Bond's current market price
P*(1+g)/(k-g) P=div per share divided by other div
Net Cash Flow+Already Being Saved or Invested/Annual After Tax Income
35. CFP Ethical principles
Total Return (1 - tax bracket)
current assets - current liabilities
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
36. Times Interest Earned
Sources of Funds-Use of Funds or Money in- Money out
EBIT/I (Where I = Interest Expense)
Top: Retirement and Estate - Mid: Growing Investments - Bottom: Guarding Against Uncertainty (Insurance)
G RETIRE - General Principles - Retirement Planning - Estate Planning - Tax Planning - Investment Planning - Risk Management (Insurance) - Employee Benefits
37. Social Styles
driving - expressive - amiable - analytical
Earnings After Taxes
Tax Deduction * marginal tax rate
current assets / current liabilities
38. Attributes of Effective Advisor communiations
Sales / Average Total Assets
Tax Free Yield/(1 - Tax Bracket)
P*(1+g)/(k-g) P=div per share divided by other div
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
39. Net Investment Income
Price Earnings Growth ratio; P/E divided by projected earnings growth
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
Tax Deduction * marginal tax rate
Net Worth/Total Assets
40. Working Capital
current assets - current liabilities
EAT / Sales
Unconditional positive regard - Accurate empathy - Genuineness - Self-awareness
Continuing - Restatement of content - Reflection of feeling - Clarifying - Summarization
41. Solvency Ratio
Net Worth/Total Assets
Total Liabilities / Equity
Earnings Before Interest & Taxes
Sources of Funds-Use of Funds or Money in- Money out
42. aka Net Income
Tax Deduction * marginal tax rate
assets less liabilities - divided by the number of shares of common stock of a company
Earnings After Taxes
Total Liabilities / Equity
43. 'normal' ratio
Net Cash Flow+Already Being Saved or Invested/Annual After Tax Income
(P1 + D - P0)/P0
P*(1+g)/(k-g) P=div per share divided by other div
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence
44. The payout ratio
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
IOC FC PD - Integrity - Objectivity - Compentence - Fairness - Confidentiality - Professionalism - Diligence
Gross investment Income less any deductible other investment-related expenses (must exceed 2% of AGI)
dividends / earnings
45. Quick Ratio (aka Acid test)
Net Income/Equity
(current assets - inventory) / current liabilities
Tax Credit/marginal tax rate
g = ROE X b - where b is equal to the retention ratio
46. Opportunities in Financial Planning
Top: Retirement and Estate - Mid: Growing Investments - Bottom: Guarding Against Uncertainty (Insurance)
Price Earnings Growth ratio; P/E divided by projected earnings growth
RIVETC - Rising median age - Increased impact of dual-income families - Volatility of financial conditions - Evolving tax environment - Technological change - Concern over fraud and firm failure
(1/T)(r1+r2+...+rT)