Essentials of Personal Financial Planning 1st Edition by Susan M. Tillery test bank
Essentials of Personal Financial Planning
test bank
NOTE TO INSTRUCTORS:
The questions provided in this test bank can be used for exams, homework assignments, or classroom discussion. Correct answers are highlighted in bold.
Chapter 1
1. Which of the following is not a personal financial planning service?
A. Charitable planning.
B. Elder planning.
C. Retirement planning.
D. Income tax preparation.
2. All of the following are types of Additional Engagements except:
A. Discovery engagement.
B. Implementation engagement.
C. Monitoring engagement.
D. Updating engagement.
3. The construction of a dream home is an example of:
A. Cash flow category.
B. IRC Section 121.
C. Life planning goal.
D. Personal financial planning.
4. An implementation engagement should include all of the following except:
A. Description of limitations on the work performed.
B. Frequency and time period of measuring the client’s progress toward reaching the stated goals.
C. Summary of recommended actions to be taken.
D. Summary of the planning decisions being implemented.
5. Which of the following is not required for the disclosure of compensation?
A. Amount of compensation.
B. Method of compensation, except for the impact of indirect compensation.
C. Noncash benefits, received by the member for referrals to other providers
D. Time period of which compensation will be received.
6. How many steps are required in the PFP process?
A. Two.
B. Four.
C. Seven.
D. Eleven.
7. In a personal financial planning engagement, a conflict of interest:
A. Creates a need for client consent.
B. Prohibits any objectivity.
C. Results in termination of the engagement.
D. Should not be disclosed to protect confidentiality.
8. A personal financial planning client expressing an attitude or a desire is an example of:
A. Heuristics.
B. Qualitative data.
C. Quantitative Data.
D. Socratic Questioning.
test bank
NOTE TO INSTRUCTORS:
The questions provided in this test bank can be used for exams, homework assignments, or classroom discussion. Correct answers are highlighted in bold.
Chapter 1
1. Which of the following is not a personal financial planning service?
A. Charitable planning.
B. Elder planning.
C. Retirement planning.
D. Income tax preparation.
2. All of the following are types of Additional Engagements except:
A. Discovery engagement.
B. Implementation engagement.
C. Monitoring engagement.
D. Updating engagement.
3. The construction of a dream home is an example of:
A. Cash flow category.
B. IRC Section 121.
C. Life planning goal.
D. Personal financial planning.
4. An implementation engagement should include all of the following except:
A. Description of limitations on the work performed.
B. Frequency and time period of measuring the client’s progress toward reaching the stated goals.
C. Summary of recommended actions to be taken.
D. Summary of the planning decisions being implemented.
5. Which of the following is not required for the disclosure of compensation?
A. Amount of compensation.
B. Method of compensation, except for the impact of indirect compensation.
C. Noncash benefits, received by the member for referrals to other providers
D. Time period of which compensation will be received.
6. How many steps are required in the PFP process?
A. Two.
B. Four.
C. Seven.
D. Eleven.
7. In a personal financial planning engagement, a conflict of interest:
A. Creates a need for client consent.
B. Prohibits any objectivity.
C. Results in termination of the engagement.
D. Should not be disclosed to protect confidentiality.
8. A personal financial planning client expressing an attitude or a desire is an example of:
A. Heuristics.
B. Qualitative data.
C. Quantitative Data.
D. Socratic Questioning.