CFP Certified Financial Planner Test Prep - Question List

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Which of the following is a noncash expense?

  1. Disposal of property and equipment
  2. Net increase in liability
  3. Depreciation expense
  4. None of the above

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, the positive value of the residual is the:

  1. Addition of assets
  2. Deletion of assets
  3. Difference of assets
  4. None of the above

The company Panthers Limited has a return on investment (ROI) of 5% and it has a policy of a 20% net profit margin (NPM). What would be its total assets turnover (TAT) ratio?

  1. 35%
  2. 25%
  3. 10%
  4. None of the above

The IRA has announced a reduction in tax rates. How will this change the NPM ratio of a company?

  1. It will increase
  2. It will decrease
  3. It will have no effect
  4. There is not enough information to answer this question

You want to purchase a bond that will value $10,000 in 10 years. If the simple interest rate is 9.5% per year, what is the maximum amount you should pay right now?

  1. $1053
  2. $5128
  3. $9132
  4. None of the above

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