CTFA

CTFA practice questions, page 11 of 35, with answer review and explanations.

Question 51

The concept that dollar today is worth more than a dollar received in future. It is:

  1. Time value of money
  2. Compounding
  3. Timeline
  4. Future value

Question 52

Rule 72 is:

  1. A useful formula for estimating how long it will take to double a sum at a given interest rate
  2. A useful formula for estimating how long it will take to triple a sum at a given interest rate
  3. A useful formula for estimating how long it will take to graphically represent the time value of money
  4. A useful formula for estimating how long it will take to make the future value of deposited money

Question 53

On an accounting statement of cash flows an "increase(decrease) in cash and cash equivalents" appears as:

  1. A cash flow from operating activities
  2. A cash flow from investing activities
  3. A cash flow from financing activities
  4. None of the above

Question 54

Uses of funds include a (an):

  1. Decrease in cash
  2. Increase in any liability
  3. Increase in fixed assets
  4. Tax refund

Question 55

A tax structure in which the larger the amount of taxable income, the higher the rate at which it is taxed is:

  1. Marginal tax rate
  2. Progressive tax structure
  3. Tax bracket
  4. Immovable tax structure