CDFA Exam Study Guide Exam With Correct Answers 2024

CDFA Exam Study Guide Exam With Correct Answers 2024 5-year cliff vesting Correct Answer An employee who has at least five years of service must have a non-forfeitable right to 100% of the employee's accrued benefit [IRC §411(a)(2)(A)]. 3- to 7-year vesting (7-year graded vesting) Correct Answer An employee who has completed at least three years of service must have a non-forfeitable right to at least the following percentages of his or her accrued benefit: 20% after three years of service, 40% after four years of service, 60% after five years of service, 80% after six years of service, and 100% after seven years of service [IRC §411(a)(2)(B)]. Top-heavy plans or matching contributions typically use _________ vesting Correct Answer 3-year cliff vesting or 6-year graded vesting. Schedule A: Itemized Deductions Correct Answer Schedule ____ may help identify unlisted assets or sources of income. For example, property taxes may reveal real property or a boat that one spouse does not know exists; and gambling losses would reveal that there are gambling winnings. Schedule B: Interest and Ordinary Dividends Correct Answer Schedule ____ identifies the assets and investments generating interest and dividends. Schedule C: Profit or Loss from Business Correct Answer Schedule ___ may be a place to hide assets or income. For example, depreciation expense is not a cash outflow and should sometimes be added back to net income to determine actual income. The depreciation schedule may also reveal additional assets in the business. Schedule D: Capital Gains and Losses Correct Answer Schedule _______ is used to report gains and losses from the sale of stocks, bonds, and real estate. Schedule E: Supplemental Income and Loss Correct Answer Schedule _____ is used to report income from rental properties, royalties, partnerships, and S-corporation income. Depreciation would be something to review. Form 1065 Correct Answer Form _________ is used to report partnership income. Form 1120 Correct Answer Form __________ is used to report corporate income Form 1120S Correct Answer Form ___________ is used to report corporate income for S corporations.