FP1 Comprehensive Exam Practice Questions and
Answers
Correct
Incorrect
1 of 80
Term
At the federal level, when more than one person supports a child, who
can claim the childcare expense deduction?
A. The lower income earner must claim the deduction, subject to some
exceptions.
B. The lower income earner must always claim the deduction, with no
exception.
C. The higher income earner must always claim the deduction, with no
exception.
D. The deduction can be split between the two supporting individuals.
Give this one a try later!
B. The role has shifted to a client driven model where building a strong client
relationship is key.
,The role of the Advisor in the financial services industry has changed in recent years
from one that is product driven to one that is client driven. Reference: Module 1,
Section 1
A. The lower income earner must claim the deduction, subject to some
exceptions.
General Feedback:
If more than one person supports the child, the deduction must be claimed by
the person with the lower amount of net income, subject to some exceptions.
Reference: Module 3, Section 1.
C. The names under which ownership of their assets is held.
General Feedback:
Ali will most likely ask for the names under which ownership of the Shafeis's assets is
held as jointly held property is treated differently for probate and other purposes.
Asking about investments or their need for income or growth would be secondary
in an estate planning discussion. Finding out the physical location of their will and
POA is not that important since Ali has already asked for the primary instructions
contained in those documents.Reference: Module 3, Section 5.
C. The first repayment will be due no later than 60 days after the 5th year following
the first withdrawal.
General Feedback:
The annuitant or the spouse or partner must be in enrolled in full-time training or
postsecondary education, not part-time. Up to $10,000 a year can be withdrawn
over a 4 year period, not a 10 year period. Amounts withdrawn must be repaid to
the RRSP in installments over 10 years not 5 years. Reference: Module 3 - Section 3.
Don't know?
2 of 80
,Term
A couple wishes to maximize their savings in a tax-effective manner for
their 5-year old child's post-secondary education. They wish to ensure
that the funds accumulated will be used for educational purposes only.
Select the most effective investment structure for their goal.
A. An RRSP.
B. An RESP.
C. An in-trust account.
D. A Tax-Free Savings Account.
Give this one a try later!
C. I and III only.
General Feedback:
A Power of Attorney grants Hiba the ability to sell securities and purchase property,
but, not to change a will; the ability to change a beneficiary designation is not
generally considered permissible with a Power of Attorney. Reference: Module 3,
Section 5.
B. 30%.
General Feedback:
The calculation is: Annual Mortgage Payments $24,000 + Property Taxes $5,000 +
Heating Costs $1,440 divided by Annual Income $100,000. This equals $30,440 ÷
$100,000 = 30.44%. Reference: Module 2 Section 2.
, B. An RESP.
General Feedback:
An RESP is the most appropriate choice for their goal. It will allow them to
maximize their savings for their child's education due to the CESG grant, and
the structure of the plan is such that it must be used for post-secondary
educational p ur poses only.
D. Letter of Indemnit y.
General Feedback:
If the amounts involved are relatively small, under $30,000 for example, a financial
institution may be willing to accept a letter of indemnity or a probate bond from the
executor in lieu of Letters Probate. This avoids the cost of probate for the estate.
Reference: Module 3, Section 5.
Don't know?
3 of 80
Term
Choose the document that can be prepared at the time of signing a
will that will help prevent later problems in verifying the validity of the
will.
A. Letters Probate.
B. Notarial Will.
C. Codicil.
D. Affidavit of Execution.
Give this one a try later!
Answers
Correct
Incorrect
1 of 80
Term
At the federal level, when more than one person supports a child, who
can claim the childcare expense deduction?
A. The lower income earner must claim the deduction, subject to some
exceptions.
B. The lower income earner must always claim the deduction, with no
exception.
C. The higher income earner must always claim the deduction, with no
exception.
D. The deduction can be split between the two supporting individuals.
Give this one a try later!
B. The role has shifted to a client driven model where building a strong client
relationship is key.
,The role of the Advisor in the financial services industry has changed in recent years
from one that is product driven to one that is client driven. Reference: Module 1,
Section 1
A. The lower income earner must claim the deduction, subject to some
exceptions.
General Feedback:
If more than one person supports the child, the deduction must be claimed by
the person with the lower amount of net income, subject to some exceptions.
Reference: Module 3, Section 1.
C. The names under which ownership of their assets is held.
General Feedback:
Ali will most likely ask for the names under which ownership of the Shafeis's assets is
held as jointly held property is treated differently for probate and other purposes.
Asking about investments or their need for income or growth would be secondary
in an estate planning discussion. Finding out the physical location of their will and
POA is not that important since Ali has already asked for the primary instructions
contained in those documents.Reference: Module 3, Section 5.
C. The first repayment will be due no later than 60 days after the 5th year following
the first withdrawal.
General Feedback:
The annuitant or the spouse or partner must be in enrolled in full-time training or
postsecondary education, not part-time. Up to $10,000 a year can be withdrawn
over a 4 year period, not a 10 year period. Amounts withdrawn must be repaid to
the RRSP in installments over 10 years not 5 years. Reference: Module 3 - Section 3.
Don't know?
2 of 80
,Term
A couple wishes to maximize their savings in a tax-effective manner for
their 5-year old child's post-secondary education. They wish to ensure
that the funds accumulated will be used for educational purposes only.
Select the most effective investment structure for their goal.
A. An RRSP.
B. An RESP.
C. An in-trust account.
D. A Tax-Free Savings Account.
Give this one a try later!
C. I and III only.
General Feedback:
A Power of Attorney grants Hiba the ability to sell securities and purchase property,
but, not to change a will; the ability to change a beneficiary designation is not
generally considered permissible with a Power of Attorney. Reference: Module 3,
Section 5.
B. 30%.
General Feedback:
The calculation is: Annual Mortgage Payments $24,000 + Property Taxes $5,000 +
Heating Costs $1,440 divided by Annual Income $100,000. This equals $30,440 ÷
$100,000 = 30.44%. Reference: Module 2 Section 2.
, B. An RESP.
General Feedback:
An RESP is the most appropriate choice for their goal. It will allow them to
maximize their savings for their child's education due to the CESG grant, and
the structure of the plan is such that it must be used for post-secondary
educational p ur poses only.
D. Letter of Indemnit y.
General Feedback:
If the amounts involved are relatively small, under $30,000 for example, a financial
institution may be willing to accept a letter of indemnity or a probate bond from the
executor in lieu of Letters Probate. This avoids the cost of probate for the estate.
Reference: Module 3, Section 5.
Don't know?
3 of 80
Term
Choose the document that can be prepared at the time of signing a
will that will help prevent later problems in verifying the validity of the
will.
A. Letters Probate.
B. Notarial Will.
C. Codicil.
D. Affidavit of Execution.
Give this one a try later!
