CDFA Exam Study Materials Test Questions And Answers

CDFA Exam Study Materials Test Questions And Answers 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 Scorporation 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. Schedule 1: Additional Income and Adjustments to Income - CORRECT ANSWERSchedule ____________________ includes additional income, such as capital gains, unemployment compensation, prize or award money, and gambling winnings. It also includes deductions such as student loan interest, self-employment tax, and educator expenses. Schedule 2 Tax - CORRECT ANSWER- Schedule _________ details the alternative minimum tax (ATM) or an excess advance premium tax credit repayment. Schedule 3 Nonrefundable Credits - CORRECT ANSWER- Schedule _________ is used to claim a nonrefundable credit other than the child tax credit or the credit for other dependents, such as the foreign tax credit, education credits, or general business credit. Schedule 4 Other Taxes - CORRECT ANSWER- Schedule ___________ reports other taxes, such as self-employment tax, household employment taxes, additional tax on IRAs or other qualified retirement plans and tax-favored accounts. Schedule 5: Other Payments and Refundable Credits - CORRECT ANSWER- Schedule _________ is used to claim a refundable credit other than the earned income credit, American opportunity credit, or additional child tax credit. Form 4562 - CORRECT ANSWER- Form _________ reports deductions for depreciation and amortization as well as provides information on the business/investment use of automobiles and other listed property. Form 4797 - CORRECT ANSWER- Form ___________ reports the sale or exchange of business property and the computation of recapture amounts under sections 179 and 280F(b)(2). Accountant - CORRECT ANSWER- An __________________ is a person who is qualified to keep, audit, and inspect the financial records of individuals or business concerns and prepares financial and tax reports. Actuary - CORRECT ANSWER- An ___________ is a person whose work is to calculate statistically risks, premiums, and life expectancies for insurance and pension plans. Attorney - CORRECT ANSWER- An ________________ person who is legally qualified and licensed to represent a person in a legal matter, such as a transaction or lawsuit. Business Valuator - CORRECT ANSWER- A _________________ is an individual who is trained in evaluating and assigning a value to a business. Divorce - CORRECT ANSWER- A __________________ is the legal proceeding by which a marriage is legally terminated. It may be contested (where one party denies the allegation or wants to keep the marriage in place) or uncontested. Mediator - CORRECT ANSWER- A _______________ is an individual who has been trained to assist people in coming to an agreement, especially one that reconciles differences between disputants. Pension Valuator - CORRECT ANSWER- A ________________________ is an individual who is qualified to calculate the value of defined benefit pension plans, such as the marital portion of a plan for the division of assets in a divorce. Arbitration - CORRECT ANSWER- _________________ is submitting a disputed matter for decision to a person who is not a judge. The decision of an arbitrator is usually binding and final. Arbitration varies greatly from mediation. Best Interest of the Child - CORRECT ANSWER- _____________________________ is a discretionary legal standard used by judges when making decisions about custody, visitation, and support for a child when the parents are divorcing. Change of Venue - CORRECT AN