CDFA Exam Study Materials EXAM (updated 2026) Questions & Answers |
With 100% Correct Answers graded A+ Guaranteed Success!!
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)]. - (answer)5-year cliff vesting
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)]. - (answer)3- to 7-year vesting (7-year graded vesting)
3-year cliff vesting or 6-year graded vesting. - (answer)Top-heavy plans or matching contributions
typically use _________ vesting
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. - (answer)Schedule A: Itemized Deductions
Schedule ____ identifies the assets and investments generating interest and dividends. -
(answer)Schedule B: Interest and Ordinary Dividends
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. - (answer)Schedule C: Profit or
Loss from Business
Schedule _______ is used to report gains and losses from the sale of stocks, bonds, and real estate. -
(answer)Schedule D: Capital Gains and Losses
Schedule _____ is used to report income from rental properties, royalties, partnerships, and S-
corporation income. Depreciation would be something to review. - (answer)Schedule E: Supplemental
Income and Loss
,CDFA Exam Study Materials EXAM (updated 2026) Questions & Answers |
With 100% Correct Answers graded A+ Guaranteed Success!!
Form _________ is used to report partnership income. - (answer)Form 1065
Form __________ is used to report corporate income - (answer)Form 1120
Form ___________ is used to report corporate income for S corporations. - (answer)Form 1120S
Schedule ____________________ 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. - (answer)Schedule 1: Additional
Income and Adjustments to Income
Schedule _________ details the alternative minimum tax (ATM) or an excess advance premium tax
credit repayment. - (answer)Schedule 2 Tax
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. -
(answer)Schedule 3 Nonrefundable Credits
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. - (answer)Schedule
4 Other Taxes
Schedule _________ is used to claim a refundable credit other than the earned income credit, American
opportunity credit, or additional child tax credit. - (answer)Schedule 5: Other Payments and Refundable
Credits
Form _________ reports deductions for depreciation and amortization as well as provides information
on the business/investment use of automobiles and other listed property. - (answer)Form 4562
,CDFA Exam Study Materials EXAM (updated 2026) Questions & Answers |
With 100% Correct Answers graded A+ Guaranteed Success!!
Form ___________ reports the sale or exchange of business property and the computation of recapture
amounts under sections 179 and 280F(b)(2). - (answer)Form 4797
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. - (answer)Accountant
An ___________ is a person whose work is to calculate statistically risks, premiums, and life
expectancies for insurance and pension plans. - (answer)Actuary
An ________________ person who is legally qualified and licensed to represent a person in a legal
matter, such as a transaction or lawsuit. - (answer)Attorney
A _________________ is an individual who is trained in evaluating and assigning a value to a business. -
(answer)Business Valuator
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. - (answer)Divorce
A _______________ is an individual who has been trained to assist people in coming to an agreement,
especially one that reconciles differences between disputants. - (answer)Mediator
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. -
(answer)Pension Valuator
_________________ 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. -
(answer)Arbitration
, CDFA Exam Study Materials EXAM (updated 2026) Questions & Answers |
With 100% Correct Answers graded A+ Guaranteed Success!!
_____________________________ is a discretionary legal standard used by judges when making
decisions about custody, visitation, and support for a child when the parents are divorcing. -
(answer)Best Interest of the Child
A ______________________ is a change of judges or geographical location, requested by a party to the
action who feels that the change is justified by state law. - (answer)Change of Venue
A ____________________________ is a team approach to divorce in which divorcing couples obtain
professional help from specialists in the legal, financial, and mental health fields; when needed,
additional professionals (including child/parenting experts) may be called in to help the couple settle
their case. - (answer)Collaborative Divorce
_____________________________ is a new dispute resolution model in which each party retains their
own attorney who has gone through specialized "___________________________" training. The
lawyer's only job is to help settle the dispute. All parties agree to work together respectfully, honestly,
and in good faith to try to find "win-win" solutions to the legitimate needs of both parties. No one may
go to court, or even threaten to do so. If that should occur, the ___________________________ process
terminates and both lawyers are disqualified from any further involvement in the case. -
(answer)Collaborative Law
________________ is an agreement between two or more persons where one of the parties brings false
charges against the other. In a divorce case, the husband and wife may agree to use adultery as a
ground in order to obtain divorce more quickly, knowing full well that adultery was not committed.
_________________ is illegal. - (answer)Collusion
__________________________ is a judicially-recognized marriage in some states, usually based on
cohabitation where no formal marriage ceremony has taken place. - (answer)Common Law Marriage
____________________ is the one who files the suit; same as plaintiff. - (answer)Complainant
With 100% Correct Answers graded A+ Guaranteed Success!!
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)]. - (answer)5-year cliff vesting
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)]. - (answer)3- to 7-year vesting (7-year graded vesting)
3-year cliff vesting or 6-year graded vesting. - (answer)Top-heavy plans or matching contributions
typically use _________ vesting
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. - (answer)Schedule A: Itemized Deductions
Schedule ____ identifies the assets and investments generating interest and dividends. -
(answer)Schedule B: Interest and Ordinary Dividends
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. - (answer)Schedule C: Profit or
Loss from Business
Schedule _______ is used to report gains and losses from the sale of stocks, bonds, and real estate. -
(answer)Schedule D: Capital Gains and Losses
Schedule _____ is used to report income from rental properties, royalties, partnerships, and S-
corporation income. Depreciation would be something to review. - (answer)Schedule E: Supplemental
Income and Loss
,CDFA Exam Study Materials EXAM (updated 2026) Questions & Answers |
With 100% Correct Answers graded A+ Guaranteed Success!!
Form _________ is used to report partnership income. - (answer)Form 1065
Form __________ is used to report corporate income - (answer)Form 1120
Form ___________ is used to report corporate income for S corporations. - (answer)Form 1120S
Schedule ____________________ 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. - (answer)Schedule 1: Additional
Income and Adjustments to Income
Schedule _________ details the alternative minimum tax (ATM) or an excess advance premium tax
credit repayment. - (answer)Schedule 2 Tax
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. -
(answer)Schedule 3 Nonrefundable Credits
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. - (answer)Schedule
4 Other Taxes
Schedule _________ is used to claim a refundable credit other than the earned income credit, American
opportunity credit, or additional child tax credit. - (answer)Schedule 5: Other Payments and Refundable
Credits
Form _________ reports deductions for depreciation and amortization as well as provides information
on the business/investment use of automobiles and other listed property. - (answer)Form 4562
,CDFA Exam Study Materials EXAM (updated 2026) Questions & Answers |
With 100% Correct Answers graded A+ Guaranteed Success!!
Form ___________ reports the sale or exchange of business property and the computation of recapture
amounts under sections 179 and 280F(b)(2). - (answer)Form 4797
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. - (answer)Accountant
An ___________ is a person whose work is to calculate statistically risks, premiums, and life
expectancies for insurance and pension plans. - (answer)Actuary
An ________________ person who is legally qualified and licensed to represent a person in a legal
matter, such as a transaction or lawsuit. - (answer)Attorney
A _________________ is an individual who is trained in evaluating and assigning a value to a business. -
(answer)Business Valuator
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. - (answer)Divorce
A _______________ is an individual who has been trained to assist people in coming to an agreement,
especially one that reconciles differences between disputants. - (answer)Mediator
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. -
(answer)Pension Valuator
_________________ 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. -
(answer)Arbitration
, CDFA Exam Study Materials EXAM (updated 2026) Questions & Answers |
With 100% Correct Answers graded A+ Guaranteed Success!!
_____________________________ is a discretionary legal standard used by judges when making
decisions about custody, visitation, and support for a child when the parents are divorcing. -
(answer)Best Interest of the Child
A ______________________ is a change of judges or geographical location, requested by a party to the
action who feels that the change is justified by state law. - (answer)Change of Venue
A ____________________________ is a team approach to divorce in which divorcing couples obtain
professional help from specialists in the legal, financial, and mental health fields; when needed,
additional professionals (including child/parenting experts) may be called in to help the couple settle
their case. - (answer)Collaborative Divorce
_____________________________ is a new dispute resolution model in which each party retains their
own attorney who has gone through specialized "___________________________" training. The
lawyer's only job is to help settle the dispute. All parties agree to work together respectfully, honestly,
and in good faith to try to find "win-win" solutions to the legitimate needs of both parties. No one may
go to court, or even threaten to do so. If that should occur, the ___________________________ process
terminates and both lawyers are disqualified from any further involvement in the case. -
(answer)Collaborative Law
________________ is an agreement between two or more persons where one of the parties brings false
charges against the other. In a divorce case, the husband and wife may agree to use adultery as a
ground in order to obtain divorce more quickly, knowing full well that adultery was not committed.
_________________ is illegal. - (answer)Collusion
__________________________ is a judicially-recognized marriage in some states, usually based on
cohabitation where no formal marriage ceremony has taken place. - (answer)Common Law Marriage
____________________ is the one who files the suit; same as plaintiff. - (answer)Complainant
