AAMS Module Quizzes (1-10) questions and
answers
What are the major steps in the asset management process - 1. gather data
2. establish goals
3. analyze information
4. make and implement recommendations
5. monitor
Stefan's business plan includes the following goal: "I will contact 50 prospective
clients and document this activity in the CRM for tracking purposes." Which
primary element of a good goal is missing? - This goal is not time-framed.
The acronym to remember for goal setting is SMART, which stands for Specific,
Measurable, Achievable, Relevant, and Time-Framed. The primary flaw in this goal
is that it is not time-framed. Because it is not time-framed, it is difficult to tell if
this is achievable, but it is certainly measurable and very likely relevant.
Which one of the following is not an invested asset? - 180-day certificate of
deposit
A certificate of deposit is a cash equivalent and therefore should be listed under
Cash and Cash Equivalents.
Victoria Gregory's financial situation is as follows:
,AAMS Module Quizzes (1-10) questions and
answers
Cash/cash EquivalentsL $15,000
Short Term debts: $23,000
LTDs: $140,000
Taxes: $8000
Invested Assets: $45,000
Use Assets: $192,000
What is her net worth? - $89,000
Assets = Cash/cash equivalents + Invested assets + Use assets ($15,000 + $45,000
+ $192,000 = $252,000). Liabilities = Short-term debts + Long-term debts ($23,000
+ $140,000 = $163,000). Assets - Liabilities = Net Worth, so $252,000 - $163,000 =
$89,000.
Which one of the following statements best describes the income statement and
its major components? - The income statement indicates, for a certain period of
time, an individual's cash inflows and outflows. Its components include gross
income, expenses, and surplus or deficit.
The income statement describes cash flow for a period of time and contains the
components of gross income, from which expenses are subtracted to determine
the surplus or deficit.
,AAMS Module Quizzes (1-10) questions and
answers
All of the following provide a clearer picture of the client's needs - 1. anticipated
retirement lifestyle
2. bad experiences w/ particular investments
3. succession planning in place, if any, for a client involved in ownership of small
business
Which one of the following is considered a "foundation" goal? - emergency fund
An emergency fund is a "foundation" goal because it is an essential goal for
survival in the event of a dramatic life event.
Which one of the following is the better written financial goal? - to accumulate
$15,000 for a boat purchase in two years
This goal is well written because it contains a specific dollar amount and a specific
time frame.
When analyzing information gathered from a client, which of the following are
important factors to look for? - 1. mismatches between the current investment
position or resources and stated goals.
, AAMS Module Quizzes (1-10) questions and
answers
This is an important factor in the analysis step. Any mismatches between the
client's goals and the investment vehicles used to attain those goals should be
highlighted.
2. the validity of the client's stated goals.
This is an important factor in the analysis step. If the client's goals are unrealistic,
this problem needs to be addressed immediately.
3. tax problems that might be ameliorated through investment planning.
This is an important factor in the analysis step. Potential tax problems should be
addressed as part of the investment strategy.
Marcia Simpson has analyzed her client's situation and has concluded that her
client will come short of attaining the amount of capital he would like to have by
the time he plans to retire. The client is a low risk taker and will have limited funds
for future periodic investments. Before making a recommendation, Marcia should
do which one of the following? - Discuss the problem and ask the client to clarify
how he wishes to adjust his accumulation goal, risk level, or periodic investments.
After being informed of the various constraints, implications of their decisions,
and other options they have, the client can choose to make adjustments with
which he is comfortable.
answers
What are the major steps in the asset management process - 1. gather data
2. establish goals
3. analyze information
4. make and implement recommendations
5. monitor
Stefan's business plan includes the following goal: "I will contact 50 prospective
clients and document this activity in the CRM for tracking purposes." Which
primary element of a good goal is missing? - This goal is not time-framed.
The acronym to remember for goal setting is SMART, which stands for Specific,
Measurable, Achievable, Relevant, and Time-Framed. The primary flaw in this goal
is that it is not time-framed. Because it is not time-framed, it is difficult to tell if
this is achievable, but it is certainly measurable and very likely relevant.
Which one of the following is not an invested asset? - 180-day certificate of
deposit
A certificate of deposit is a cash equivalent and therefore should be listed under
Cash and Cash Equivalents.
Victoria Gregory's financial situation is as follows:
,AAMS Module Quizzes (1-10) questions and
answers
Cash/cash EquivalentsL $15,000
Short Term debts: $23,000
LTDs: $140,000
Taxes: $8000
Invested Assets: $45,000
Use Assets: $192,000
What is her net worth? - $89,000
Assets = Cash/cash equivalents + Invested assets + Use assets ($15,000 + $45,000
+ $192,000 = $252,000). Liabilities = Short-term debts + Long-term debts ($23,000
+ $140,000 = $163,000). Assets - Liabilities = Net Worth, so $252,000 - $163,000 =
$89,000.
Which one of the following statements best describes the income statement and
its major components? - The income statement indicates, for a certain period of
time, an individual's cash inflows and outflows. Its components include gross
income, expenses, and surplus or deficit.
The income statement describes cash flow for a period of time and contains the
components of gross income, from which expenses are subtracted to determine
the surplus or deficit.
,AAMS Module Quizzes (1-10) questions and
answers
All of the following provide a clearer picture of the client's needs - 1. anticipated
retirement lifestyle
2. bad experiences w/ particular investments
3. succession planning in place, if any, for a client involved in ownership of small
business
Which one of the following is considered a "foundation" goal? - emergency fund
An emergency fund is a "foundation" goal because it is an essential goal for
survival in the event of a dramatic life event.
Which one of the following is the better written financial goal? - to accumulate
$15,000 for a boat purchase in two years
This goal is well written because it contains a specific dollar amount and a specific
time frame.
When analyzing information gathered from a client, which of the following are
important factors to look for? - 1. mismatches between the current investment
position or resources and stated goals.
, AAMS Module Quizzes (1-10) questions and
answers
This is an important factor in the analysis step. Any mismatches between the
client's goals and the investment vehicles used to attain those goals should be
highlighted.
2. the validity of the client's stated goals.
This is an important factor in the analysis step. If the client's goals are unrealistic,
this problem needs to be addressed immediately.
3. tax problems that might be ameliorated through investment planning.
This is an important factor in the analysis step. Potential tax problems should be
addressed as part of the investment strategy.
Marcia Simpson has analyzed her client's situation and has concluded that her
client will come short of attaining the amount of capital he would like to have by
the time he plans to retire. The client is a low risk taker and will have limited funds
for future periodic investments. Before making a recommendation, Marcia should
do which one of the following? - Discuss the problem and ask the client to clarify
how he wishes to adjust his accumulation goal, risk level, or periodic investments.
After being informed of the various constraints, implications of their decisions,
and other options they have, the client can choose to make adjustments with
which he is comfortable.
