CFP Mock Practice Test

10 Questions | By Priya.knowise | Updated: Sep 28, 2022 | Attempts: 1470

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Are you studying to be a certified financial planner? The CFP mock practice test is designed to help you pass the exams and get your certification. It is a known fact that starting a business without a plan will destined it for failure. The Certified Financial Planner (CFP) exam is a professional test created to measure the candidate's core competency in the knowledge, processes, and ethics required to be a professional financial planner. Give this quiz a shot, and check your qualification.

Questions and Answers

1.

Which code of ethics rule asserts that a financial planner should not solicit clients through and false or misleading communications or advertisements?
- A.
  
  Rule 101
- B.
  
  Rule 102
- C.
  
  Rule 103
- D.
  
  Rule 104
2.

A ______ statement forecasts future balance sheets and cash flow statements.
- A.
  
  Cash flow
- B.
  
  Balance sheet
- C.
  
  Pro forma
- D.
  
  Finance sheet
3.

The Bankruptcy Code was established by Congress in 1978 in accordance with Article I, Section _____ of the Constitution.
- A.
  
  7
- B.
  
  8
- C.
  
  9
- D.
  
  10
4.

When an ARM is said to have a _____ cap, this means that there is a 2 percent maximum interest rate increase every year, and 6 percent over the life of the loan.
- A.
  
  6/2
- B.
  
  2/6
- C.
  
  2+6
- D.
  
  1/9
5.

A ______ is the right of an employee to receive cash and/or stock equal to the increase in the value of the company's stock after the date of purchase.
- A.
  
  Stock appreciation duty
- B.
  
  Stock appreciation right
- C.
  
  Stock appreciation purchase
- D.
  
  Stock appreciation option
6.

Which of the following is a noncash expense?
- A.
  
  Net increase in liability
- B.
  
  Disposal of property and equipment
- C.
  
  Depreciation expense
- D.
  
  All of the above
7.

What is the positive value of the residual if we add back the depreciation expense in a closing book value of fixed assets and deduct it from the opening balance of fixed assets?
- A.
  
  Addition of assets
- B.
  
  Deletion of assets
- C.
  
  Multiplication of assets
- D.
  
  None of the above
8.

When should revenue be recognized in general?
- A.
  
  When goods have been delivered
- B.
  
  When it is virtually certain the amount will be collected
- C.
  
  When related expenses incurred to generate the revenue
- D.
  
  When goods have been manufactured
9.

The objective of a matching principle is:
- A.
  
  To accurately tabulate taxes
- B.
  
  To provide relevant information in the same period
- C.
  
  Recognize expenses in the same period in which income is earned
- D.
  
  All of the above
10.

If the expected return on your treasury stock is 9% and the expected return on your market portfolio is 11%. With a beta coefficient of 1.1, what would be the expected return on the stock?
- A.
  
  10.5%
- B.
  
  11.5%
- C.
  
  12.6%
- D.
  
  13%