Certified Trust and Financial Advisor v1.0

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Exam contains 856 questions

It is a measure of inflation based on changes in consumer goods and services:

  • A. Consumer price Index
  • B. Customer price Index
  • C. Market rate Index
  • D. Market value


Answer : A

Inflation is a vital concern to financial planning. It affects not only what we pay for our goods and services but also what we earn in our jobs. The amount of goods and services each dollar buys at a given time is:

  • A. Purchasing power
  • B. Seller"™s demand
  • C. Market value
  • D. Sales purchase difference


Answer : A

Balance sheet and income statements that serve as essential planning tools for developing and monitoring personal financial plans may be referred as:

  • A. Personal financial statements
  • B. Legal financial statements
  • C. Illegal financial statements
  • D. Company profile


Answer : A

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

  • A. Balance sheet
  • B. Income Statement
  • C. Budget
  • D. Equity turnover


Answer : C

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:

  • A. Actual price
  • B. Book value
  • C. Depreciation amount
  • D. Fair market value


Answer : D

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

  • A. Investment
  • B. Real property
  • C. Liability
  • D. Open credit obligation


Answer : B

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

  • A. Cash basis
  • B. Expense
  • C. Equity
  • D. Cash deficit


Answer : A

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

  • A. Cash deficit
  • B. Limited Liability
  • C. Cash basis
  • D. Net worth


Answer : A

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

  • A. Solvency ratio
  • B. Liquidity ratio
  • C. Savings ratio
  • D. Debt service ratio


Answer : B

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

  • A. Solvency ratio
  • B. Liquidity ratio
  • C. Savings ratio
  • D. Debt service ratio


Answer : A

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

  • A. Solvency ratio
  • B. Liquidity ratio
  • C. Savings ratio
  • D. Debt service ratio


Answer : C

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

  • A. Solvency ratio
  • B. Liquidity ratio
  • C. Savings ratio
  • D. Debt service ratio


Answer : D

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

  • A. Maintain the necessary information to monitor and control your finances
  • B. Decide how to allocate your income to reach your financial goals
  • C. Implement a system of disciplined spending-as opposed to just existing from one paycheck to the next
  • D. Enhance needles spending so you can increase the funds allocated to savings and investments


Answer : D

Budget control schedule is:

  • A. A summary that shows how actual income and expenses compare with the various budget categories
  • B. A summary that shows how actual income and expenses compare with the various budget categories and where variances (surplus or deficit) exist
  • C. A graphical presentation of cash flows
  • D. The interest earned each year


Answer : B

"Shareholder wealth" in a firm is represented by:

  • A. The number of people employed in the firm
  • B. The book value of the firm's assets less the book value of its liabilities
  • C. The amount of salary paid to its employees
  • D. The market price per share of the firm's common stock


Answer : D

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Exam contains 856 questions

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