AAMS MODULE 1 QUIZ QUESTIONS AND
CORRECT ANSWERS
\.All of the following are major steps in the asset management process
except - 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 -
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? - 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? - 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? - 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.
CORRECT ANSWERS
\.All of the following are major steps in the asset management process
except - 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 -
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? - 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? - 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? - 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.
