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FINA 306 Financial Planning Exam

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Question;1. The personal balance sheet would not generally include which of the following items:a. dividends received during the yearb. motor vehiclec. collection of rare banknoted. both a and b;2. Which of the following is generally true about thee calculations of an individual's equity or net worth ratio?a. For a young person, it is expected that their equity ratio would be relatively low as they are likely yo have a high level of debt.b. For a young person, it is expected that their equity ratio would be relatively high as they are likely yo have a low level of debt.c. the ratio shows the precentage of net worth to taotal assetsd. both a and c;3. Sources of taxation law include:a. The Income tax assessment Act 1997b. Common lawc. Public and private Rulings from the ATOD.d. all of the above;4. The greater the initial investment the:a. greater the future value of a given interest rate and given number of periodsb. lower the future value of a given interest rate and given number of periodsc. future value will be the same at a given interest rate and given number of periodsd. none of the above;5. In Australia, the maximum tax rate imposed on unearned income by minors is:a. less than that of adult individual taxpayersb. equal to that of adult individual taxpayersc. greater than that of adult individual taxpayersd. the same as that of that of adult individual taxpayers at all levels of taxable income;6. A rational response in relation to an investment involving time preference for money issues is to prefer to receive a given sum of money earlier rather than later because:a. there is a greater chance that the entity promising you the money may not fulfill the promise the longer the waiting periodb. the earlier the money is recived the earlier the ability to reinvest and earn a rate of return on such fundsc. the earlier the money is recived the earlier the ability to use the funds for current consumptiond. all of the above;7 marginal income trax rates for individuals in Australia are best described as:a. regressiveb. progressivec. constantd. none of the above;8. The Commonwealth Government has exclusively levied income tax in Australia since:a. 1912b. 1936c. 1942d. 1997;9. Indexation of the CGT cost base is only generally available where:a. an asset is acquired before 11:45am on 21 September 1999 and the asset is held for at least 12 monthsb. an asset is acquired after 11.45am on 21 September 1999 and the asset is held for at least 12 monthsc. a capital loss was realisedd. both a and c;10. Where a company has paid no Australian company tax on profits from which a dividend is derived, the dividend is said to be:a. fully frankedb. not taxablec. subject to the maximum marginal personal tax rate in the hands of the shareholderd. unfranked;11. A period of negative savings where income does not meet the required level of expenditures could alsso be regarded as a(n):a. assetb. incre`ase in `equi`tyc. savings surplusd. savings deficit;12. The company tax rate levied on taxable income is:a. 10%b. 15%c. 30%d. 48.5%;13. If you were to deposit $850 today into on investment account earning 6% p.a, compunded annually, approximately how such will you have in your account at the end of 5years?a. $1,165b. $1,137c. $1,206d. $620;14. Which of the following are not tax deductible expenses?a. expenses of a domestic natureb. expenses of a capital naturec. expenses incurred in earning exempt incomed. all of the above;15. The debt-service ratio shows monthly debt commitments as a percentage of:a. before-tax monthly incomeb. total liabilitiesc. after-tax monthly incomed. none of the above;16. An individual would rather receive a taxation offset as opposed to an allowable deduction because:a. an allowable deduction is substracted from assessable income in order to reduce taxable incomeb. a taxation offset can be used to eliminate gross tax payablec. a tax offset represents a reduction in the amount of tax that is required to be paid by a taxpayerd. all of the above;17. Income tax is imposed on a taxpayer's:a. assessable incomeb. taxable incomesc. tax offsetsd. taxable income less tax offsets;18. Which of the following items would not generally be included in the calculations of an individual's liquidity ratio?a. total balance of an outstanding 25-year mortgage loan taken out in the last yearb. debt repayments over the next 12 monthsc. amount of outstanding telephone accountd. both and c;19. The time The time preference for money concept is directly related to the preference of:a. receiving a specified sum of money today rather than at some future time when such choice is availableb. receiving a specified sum of money at some future time rather than today when such choice is availablec. paying a specified sum of money at some future time rather than today when such choice is avaialbled. both a and c;20. In the clauclation of the savings ratio, savings is defined as:a. the amount left over after dedcuting expenditure from incomeb. the balance of an individula funds on deposits at a bankc. the amount left over after deducting expenditure from income after we add back items that may be regarded as an investmentd. both a and b

 

Paper#50487 | Written in 18-Jul-2015

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