CRPC Latest Final Exam Answer Key
100% Complete Full Length Exam With
Answers
What is the tax treatment for a shareholder participating in a common
stock's dividend reinvestment program?
The shareholder is treated as if he or she received a cash dividend equal
to the fair market value of the shares purchased under the plan. You
literally bought more stock with the dividends. The dividend you got is
treated like cash. The dividend is cash and you used that cash to buy more
stock. The fair market value of the shares purchased is generally taxed at
a 15% or 20% rate.
What is the valuation date for gifts?
The valuation date for gifts is when the transfer is completed!
Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety
(TBE), and community property (CP) are all forms of co-ownership that
can be used by who only?
A husband and a wife.
,Joint tenants or tenants in common are forms of ownership that can be
used by who only?
Non spouses. Husband and wife can't use these.
Do rights of survivorship property bypasses probate?
Yes.
Property held as a tenant in common or in which the decedent solely
owned his interest does not what?
Bypass probate.
The basis that is used in determining gains from mutual funds sales may
be calculated by using what three methods?
LIFO, Average Cost, Specific Identification method
When gathering data during the retirement planning process, financial
goals should be quantified in what two ways?
Dollar amounts and established time frames.
,The Securities Act of 1933
Required that new companies provide full disclosure through the issuance
of a prospectus.
Securities Exchange Act of 1934
Created the SEC.
Investment Company Act of 1940
The regulation of mutual funds.
Investment Advisers Act of 1940
Requires advisors to register with the SEC.
Statement of Financial Position is used to calculate what? And what does
it have on it?
Assets and Liabilities which helps you calculate Net Worth.
, A Cash Flow statement is used to calculate what? And what does it have
on it?
Inflows and out flows. Not assets and liabilities.
When calculating net worth, what DON'T you include?
Taxes or Auto
When calculating cash flow, what DON'T you include?
Checking or Credit Cards
How do you calculate standard deviation? (Remember it makes you MAD
>:| )
MEAN return plus deviation
MEAN return minus deviation
What are the 3 levels of Standard Deviation?
100% Complete Full Length Exam With
Answers
What is the tax treatment for a shareholder participating in a common
stock's dividend reinvestment program?
The shareholder is treated as if he or she received a cash dividend equal
to the fair market value of the shares purchased under the plan. You
literally bought more stock with the dividends. The dividend you got is
treated like cash. The dividend is cash and you used that cash to buy more
stock. The fair market value of the shares purchased is generally taxed at
a 15% or 20% rate.
What is the valuation date for gifts?
The valuation date for gifts is when the transfer is completed!
Joint tenancy with right of survivorship (JTWROS), tenancy by the entirety
(TBE), and community property (CP) are all forms of co-ownership that
can be used by who only?
A husband and a wife.
,Joint tenants or tenants in common are forms of ownership that can be
used by who only?
Non spouses. Husband and wife can't use these.
Do rights of survivorship property bypasses probate?
Yes.
Property held as a tenant in common or in which the decedent solely
owned his interest does not what?
Bypass probate.
The basis that is used in determining gains from mutual funds sales may
be calculated by using what three methods?
LIFO, Average Cost, Specific Identification method
When gathering data during the retirement planning process, financial
goals should be quantified in what two ways?
Dollar amounts and established time frames.
,The Securities Act of 1933
Required that new companies provide full disclosure through the issuance
of a prospectus.
Securities Exchange Act of 1934
Created the SEC.
Investment Company Act of 1940
The regulation of mutual funds.
Investment Advisers Act of 1940
Requires advisors to register with the SEC.
Statement of Financial Position is used to calculate what? And what does
it have on it?
Assets and Liabilities which helps you calculate Net Worth.
, A Cash Flow statement is used to calculate what? And what does it have
on it?
Inflows and out flows. Not assets and liabilities.
When calculating net worth, what DON'T you include?
Taxes or Auto
When calculating cash flow, what DON'T you include?
Checking or Credit Cards
How do you calculate standard deviation? (Remember it makes you MAD
>:| )
MEAN return plus deviation
MEAN return minus deviation
What are the 3 levels of Standard Deviation?
