CDFA Exam Studyguide questions with
verified correct detailed answers latest
updated version 2025
5-year cliff vesting--- correct precise 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 precise 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 precise answer ---3-year cliff vesting or 6-year
graded vesting.
,Schedule A: Itemized Deductions--- correct precise 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 precise answer
---Schedule ____ identifies the assets and investments generating
interest and dividends.
Schedule C: Profit or Loss from Business--- correct precise 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 precise 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 precise answer -
--Schedule _____ is used to report income from rental properties,
,royalties, partnerships, and S-corporation income. Depreciation would
be something to review.
Form 1065--- correct precise answer ---Form _________ is used to
report partnership income.
Form 1120--- correct precise answer ---Form __________ is used to
report corporate income
Form 1120S--- correct precise answer ---Form ___________ is used to
report corporate income for S corporations.
Schedule 1: Additional Income and Adjustments to Income--- correct
precise answer ---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.
Schedule 2 Tax--- correct precise answer ---Schedule _________
details the alternative minimum tax (ATM) or an excess advance
premium tax credit repayment.
, Schedule 3 Nonrefundable Credits--- correct precise 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 precise 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 precise
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 precise 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 precise answer ---Form ___________ reports the
sale or exchange of business property and the computation of
recapture amounts under sections 179 and 280F(b)(2).
verified correct detailed answers latest
updated version 2025
5-year cliff vesting--- correct precise 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 precise 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 precise answer ---3-year cliff vesting or 6-year
graded vesting.
,Schedule A: Itemized Deductions--- correct precise 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 precise answer
---Schedule ____ identifies the assets and investments generating
interest and dividends.
Schedule C: Profit or Loss from Business--- correct precise 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 precise 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 precise answer -
--Schedule _____ is used to report income from rental properties,
,royalties, partnerships, and S-corporation income. Depreciation would
be something to review.
Form 1065--- correct precise answer ---Form _________ is used to
report partnership income.
Form 1120--- correct precise answer ---Form __________ is used to
report corporate income
Form 1120S--- correct precise answer ---Form ___________ is used to
report corporate income for S corporations.
Schedule 1: Additional Income and Adjustments to Income--- correct
precise answer ---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.
Schedule 2 Tax--- correct precise answer ---Schedule _________
details the alternative minimum tax (ATM) or an excess advance
premium tax credit repayment.
, Schedule 3 Nonrefundable Credits--- correct precise 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 precise 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 precise
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 precise 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 precise answer ---Form ___________ reports the
sale or exchange of business property and the computation of
recapture amounts under sections 179 and 280F(b)(2).
