CDFA Exam Study Materials | QUESTIONS AND ANSWERS | LATEST 2024/25
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Course
CDFA
Institution
CDFA
5-year Icliff Ivesting I- I I I I IAn Iemployee Iwho Ihas Iat Ileast Ifive Iyears Iof Iservice Imust Ihave Ia
Inon-forfeitable Iright Ito I100% Iof Ithe Iemployee's Iaccrued Ibenefit I[IRC I§411(a)(2)(A)].
3- Ito I7-year Ivesting I(7-year Igraded Ivesting) I- I I I I IAn Iemployee Iwho Ihas Icom...
CDFA Exam Study Materials |
QUESTIONS AND ANSWERS | LATEST
2024/25
5-year cliff vesting - An employee who has at least five years of service must have a
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non-forfeitable right to 100% of the employee's accrued benefit [IRC §411(a)(2)(A)].
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3- to 7-year vesting (7-year graded vesting) - An employee who has completed at least
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three years of service must have a non-forfeitable right to at least the following
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percentages of his or her accrued benefit: 20% after three years of service, 40% after
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four years of service, 60% after five years of service, 80% after six years of service, and
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100% after seven years of service [IRC §411(a)(2)(B)].
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Top-heavy plans or matching contributions typically use _________ vesting -
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cliff vesting or 6-year graded vesting.
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Schedule A: Itemized Deductions - Schedule ____ may help identify unlisted assets or
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sources of income. For example, property taxes may reveal real property or a boat that
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one spouse does not know exists; and gambling losses would reveal that there are
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gambling winnings.
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Schedule B: Interest and Ordinary Dividends - Schedule ____ identifies the assets and
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investments generating interest and dividends.
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Schedule C: Profit or Loss from Business - Schedule ___ may be a place to hide assets
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or income. For example, depreciation expense is not a cash outflow and should
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sometimes be added back to net income to determine actual income. The depreciation
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schedule may also reveal additional assets in the business.
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Schedule D: Capital Gains and Losses - Schedule _______ is used to report gains and
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losses from the sale of stocks, bonds, and real estate.
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Schedule E: Supplemental Income and Loss - Schedule _____ is used to report
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income from rental properties, royalties, partnerships, and S-corporation income.
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Depreciation would be something to review.
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Form 1065 - I I I I II I Form _________ is used to report partnership income.
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Form 1120 - I I I I II I Form __________ is used to report corporate income
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Form 1120S - I I II I II Form ___________ is used to report corporate income for S
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corporations.
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,Schedule 1: Additional Income and Adjustments to Income - Schedule
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____________________ includes additional income, such as capital gains,
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unemployment compensation, prize or award money, and gambling winnings. It also
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includes deductions such as student loan interest, self-employment tax, and educator
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expenses.
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Schedule 2 Tax - Schedule _________ details the alternative minimum tax (ATM) or an
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excess advance premium tax credit repayment.
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Schedule 3 Nonrefundable Credits - Schedule _________ is used to claim a
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nonrefundable credit other than the child tax credit or the credit for other dependents,
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such as the foreign tax credit, education credits, or general business credit.
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Schedule 4 Other Taxes - Schedule ___________ reports other taxes, such as self-
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employment tax, household employment taxes, additional tax on IRAs or other qualified
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retirement plans and tax-favored accounts.
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Schedule 5: Other Payments and Refundable Credits - Schedule _________ is used to
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claim a refundable credit other than the earned income credit, American opportunity
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credit, or additional child tax credit.
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Form 4562 - Form _________ reports deductions for depreciation and amortization as
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well as provides information on the business/investment use of automobiles and other
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listed property.
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Form 4797 - Form ___________ reports the sale or exchange of business property and
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the computation of recapture amounts under sections 179 and 280F(b)(2).
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Accountant - An __________________ is a person who is qualified to keep, audit, and
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inspect the financial records of individuals or business concerns and prepares financial
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and tax reports.
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Actuary - An ___________ is a person whose work is to calculate statistically risks,
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premiums, and life expectancies for insurance and pension plans.
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Attorney - An ________________ person who is legally qualified and licensed to
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represent a person in a legal matter, such as a transaction or lawsuit.
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Business Valuator - A _________________ is an individual who is trained in evaluating
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and assigning a value to a business.
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Divorce - A __________________ is the legal proceeding by which a marriage is
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legally terminated. It may be contested (where one party denies the allegation or wants to
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keep the marriage in place) or uncontested.
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, Mediator - A _______________ is an individual who has been trained to assist people
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in coming to an agreement, especially one that reconciles differences between
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disputants.
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Pension Valuator - A ________________________ is an individual who is qualified to
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calculate the value of defined benefit pension plans, such as the marital portion of a plan
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for the division of assets in a divorce.
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Arbitration - _________________ is submitting a disputed matter for decision to a
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person who is not a judge. The decision of an arbitrator is usually binding and final.
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Arbitration varies greatly from mediation.
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Best Interest of the Child - _____________________________ is a discretionary legal
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standard used by judges when making decisions about custody, visitation, and support
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for a child when the parents are divorcing.
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Change of Venue - A ______________________ is a change of judges or
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geographical location, requested by a party to the action who feels that the change is
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justified by state law.
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Collaborative Divorce - A ____________________________ is a team approach to I I II I II I I I I I I
divorce in which divorcing couples obtain professional help from specialists in the legal,
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financial, and mental health fields; when needed, additional professionals (including
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child/parenting experts) may be called in to help the couple settle their case.
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Collaborative Law - _____________________________ is a new dispute resolution I I II II I I I I I I
model in which each party retains their own attorney who has gone through specialized
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"___________________________" training. The lawyer's only job is to help settle the
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dispute. All parties agree to work together respectfully, honestly, and in good faith to try
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to find "win-win" solutions to the legitimate needs of both parties. No one may go to court,
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or even threaten to do so. If that should occur, the ___________________________
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process terminates and both lawyers are disqualified from any further involvement in the
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case.
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Collusion - ________________ is an agreement between two or more persons where
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one of the parties brings false charges against the other. In a divorce case, the husband
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and wife may agree to use adultery as a ground in order to obtain divorce more quickly,
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knowing full well that adultery was not committed. _________________ is illegal.
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Common Law Marriage - __________________________ is a judicially-recognized
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marriage in some states, usually based on cohabitation where no formal marriage
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ceremony has taken place.
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Complainant - I II I II ____________________ is the one who files the suit; same as plaintiff. I I I I I I I I I I
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