CTFA Exam Questions

On Brian's death, his estate was valued at £820,000. He bequeathed £40,000 to a registered charity and split the balance equally between his registered civil partner and his brothe...

Trevor is a member of a defined benefit company pension scheme. Which factor relating to his circumstances confirms that he will avoid incurring a special annual allowance charge i...

Stephen is about to commence taking benefits from his personal pension scheme, which includes protected rights. He should be aware that:

Frank, age 55, is considering adopting a lifestyle investment technique as he aims to build up his personal pension prior to retirement. He should be aware that:

Under an employer's group life assurance policy, what is the normal tax treatment of the death benefit?

If an income protection insurance (PHI) policy has reviewable premiums, this usually means that the insurance company can:

Apart from comparing cover and costs, what other key factor should usually be considered if a financial adviser intends to recommend that a client cancels an existing term assuranc...

It's a detailed financial report that looks forward, based on expected income and expenses.

The actual value of an asset, or the price of an asset, or the price for which it can reasonably be expected to sell in the open market is its:

Tangible assets that are immovable: land and anything fixed to it, such as a house is a person's:

It is actually a method of preparing financial statements in which only transactions involving actual cash outlays are recorded.

An excess amount of expense over income resulting in insufficient funds as well as in decreased net value is called:

Total liquid assets divided by total current debts; measures the ability to pay current debts. It is:

Total net worth divided by total assets; measures the degree of exposure to insolvency is:

Cash surplus divided by net income (after tax); indicates relative amount of cash surplus achieved during a given period is:

Total monthly loan payments divided by monthly gross (before-tax) income; provides a measure of the ability to pay debts promptly is:

A cash budget is the valuable money management tool that helps you EXCEPT:

Budget control schedule is:

"Shareholder wealth" in a firm is represented by:

The long-run objective of financial management is to:

What are the earnings per share (EPS) for a company that earned $100,000 last year in after-tax profits, has 200,000 common shares outstanding and $1.2 million in retained earning...

A single, overall cost of capital is often used to evaluate projects because:

The cost of equity capital is all of the following Except:

If the following are balance sheet changes: $5,005 decrease in accounts receivable $7,000 decrease in cash $12,012 decrease in notes payable $10,001 increase in accounts payablea "...

The concept that dollar today is worth more than a dollar received in future. It is:

On an accounting statement of cash flows an "increase(decrease) in cash and cash equivalents" appears as:

Uses of funds include a (an):

A tax structure in which the larger the amount of taxable income, the higher the rate at which it is taxed is:

Average tax rate:

Which of the following would be included in a cash budget?

It is the deduction of AGI based on the number of persons supported by the taxpayer's income

Exemptions are phased out and eliminated altogether for taxpayers with high levels of AGI. After adjusting for inflation it applies to single taxpayers with 2008 AGI:

The illegal act failing to accurately report income or deductions and in extreme cases, failing to pay taxes altoghter is:

It is a technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets. What is it?

A good way to keep your spending in line is to make all household transactions (even fun money or weekly cash allowances) using a tightly controlled:

An account offered by credit unions that is similar to interest paying checking accounts offered by the other financial institutions is:

It is a type of insurance account that protects funds on deposit against failure of the institution; can be insured by FDIC and the NCUA.

_____________ are a popular offering at bank and other depository institutions and competes for deposits with money market and mutual funds.

________________ pools the funds f many small investors to purchase high return, short term marketable securities offered by the U. S treasury.

It is a formal, legal commitment to extend credit up to some maximum amount over a stated period of time.

The type(s) of collateral generally used for a secured short-term loan is(are):

The investment proposal with the greatest relative risk would have:

A safe-deposit box is a rented drawer in a bank's vault. Boxes can be rented for:

Probability-tree analysis is best used when cash flows are expected to be:

You are considering two mutually exclusive investment proposals, project A and project B B's expected value of net present value is $1,000 less than that for A and A has less dispe...

If two projects are completely independent (or unrelated), the measure of correlation between them is:

Managerial options can be viewed as:

Checkbook ledger:

Assume that you purchase a car for $20,000 in September. You make a down payment of $3000 and finance the remaining amount $17000 with a 4-year, 5.5% installment loan payable month...

Calculating certain financial ratios can help you evaluate your financial performance over time. What's more, if you apply for a loan, the lender probably will look at the ratios t...