AAMS MODULE 1 QUIZ WITH
COMPLETE SOLUTIONS
All of the following are major steps in the asset management process except - Correct
Answers -Establishing an asset allocation policy. Developing an asset allocation policy
is not a major step in the asset management process, but, rather a component of the
making and implementing recommendations step.
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 - Correct Answers -
Time-framed. The acronym to remember for goal setting is S.M.A.R.T, which stands for
Specific, Measurable, Achievable, Relevant, and Time-Framed. The flaw in this goal is
that it is not time-framed.
Which one of the following is NOT an invested asset? - Correct Answers -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:
Cash/cash equivalents$15,000
Short-term debts$23,000
Long-term debts$140,000
Taxes$8,000
Invested assets$45,000
Use assets$192,000
What is her net worth? - Correct Answers -$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? - Correct
Answers -The income statement indicates, for a certain period of time, an individual's
cash inflows and outflows.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 either a surplus or a deficit.
All of the following provide a clearer picture of the client's needs except - Correct
Answers -the current rate of inflation. The current rate of inflation does not specifically
COMPLETE SOLUTIONS
All of the following are major steps in the asset management process except - Correct
Answers -Establishing an asset allocation policy. Developing an asset allocation policy
is not a major step in the asset management process, but, rather a component of the
making and implementing recommendations step.
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 - Correct Answers -
Time-framed. The acronym to remember for goal setting is S.M.A.R.T, which stands for
Specific, Measurable, Achievable, Relevant, and Time-Framed. The flaw in this goal is
that it is not time-framed.
Which one of the following is NOT an invested asset? - Correct Answers -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:
Cash/cash equivalents$15,000
Short-term debts$23,000
Long-term debts$140,000
Taxes$8,000
Invested assets$45,000
Use assets$192,000
What is her net worth? - Correct Answers -$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? - Correct
Answers -The income statement indicates, for a certain period of time, an individual's
cash inflows and outflows.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 either a surplus or a deficit.
All of the following provide a clearer picture of the client's needs except - Correct
Answers -the current rate of inflation. The current rate of inflation does not specifically
