ACC356 Midterm Complete Questions And Answers With Latest Set
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Course
ACC356
Institution
ACC356
ACC356 Midterm Complete Questions And Answers With Latest Set
Which of the following is most likely to take place in the Analyzing the Client's Current Course of Action and Potential Alternative Courses of Action step?
a) During your meeting with Alexis, she provides you with several documents in...
ACC356 Midterm Complete Questions And Answers
With Latest Set
Which of the following is most likely to take place in the Analyzing the Client's Current Course of Action and
Potential Alternative Courses of Action step?
a) During your meeting with Alexis, she provides you with several documents including her employee benefits
information and bank statements
b) After meeting with David, you utilize the information from his current financial statements to calculate his
housing ratio and savings ratio
c) You provide your client with a description of the fees and costs of your financial planning services
d) In your meeting with Rosie, you sell her a new life insurance policy ANS B
Financial planners earn compensation in the form of:
1. A percentage of assets managed
2. An hourly rate or fee
3. A commission on investment and insurance products sold
a) 1 only
b) 1 and 2
c) 1, 2, and 3
d) 2 only ANS C
During their meeting with you, Johnny and June call the benefits office to adjust their tax withholding to better suit
their financial needs. Which of the following stages of the financial planning process is the planner engage?
a) Analyzing the Client's Current Course of Action and Potential Alternative Courses of Action
b) Monitoring Progress and Updating
c) Implementing the Financial Planning
d) Developing the Financial Planning Recommendations ANS C
Stages of the Financial Planning Process ANS 1. Analyze Client's course of action and potential alternative
courses of action
2. Monitoring Progress and Updating
3. Identifying and Selecting Goals
4. Understanding the Client's Personal and Financial Circumstances
,5. Implementing the Financial Planning
6. Presenting the Financial Planning Recommendations
7. Developing the Financial Planning Recommendations
Tiffany Evans, a medical doctor and prospective client, has come to your office for the first time. Which is the most
appropriate way to greet her?
a) "Welcome to my office, Dr. Evans."
b) "Hi, Tiffany. Welcome to my office"
c) "Welcome to my office, Ms. Evans"
d) "Welcome to my office" ANS A
Your client, Donald, provides you with his tax returns from the previous year. Which of the following stages of
financial planning process is the planner engaged? ANS Understanding the Client's Personal and Financial
Circumstances
Which of the following is usually included in an engagement letter?
1. Defined parties to the agreement
2. Description of the fees and costs
3. Time horizon for the work to be completed
a) 1 and 2
b) 1, 2, and 3
c) 2 only
d) 2 and 3 ANS B
During your meeting with Jeff, you provide him with three education savings plans to choose from. Which stage of
the financial planning process is the planner engaged? ANS Presenting the Financial Planning
Recommendations
During your meeting with your client, Hayden Doyle, you recommended he purchase a personal liability umbrella
policy (PLUP). Which part of the financial planning process were you engaged in?
a) Implementing the Financial Planning Recommendations
b) Monitoring Progress and Updating
c) Presenting the Financial Planning Recommendations
d) Identifying and Selecting Goals ANS C
,Maria Chen has been a client of yours for many years. In your quarterly meeting with Maria, you evaluate her
retirement portfolio performance and ensure that progress is being made as expected
a) Monitoring Progress and Updating
b) Developing the Financial Planning Recommendations
c) Implementing the Financial Planning Recommendations
d) Understanding the Client's Personal and Financial Circumstances ANS A
Which school of thought has its origin in and was influenced by Freudian Psychoanalytic theory?
a) Humanistic School of Thought
b) The Developmental School of Thought
c) The Mental Wellness School of Thought
d) The Cognitive-Behavioral School of Thought ANS B
Birdie knows that in order to save for her long-term goals she must change her spending habits but is resistant to
following a budget. Which of the Five Stages of Change is Birdie in?
a) Pre-Contemplation
b) Preparation
c) Action
d) Contemplation ANS D
What are the five stages of change? ANS Pre-contemplation (no intent to change)
Contemplation (aware change needed and considering)
Preparation (gathering info to make changes)
Action (action to implement plan)
Maintenance (prevention of relapse)
Which School of Thought requires the financial planner to identify behavioral excesses and inadequacies and try to
manipulate these forces to change the client's behavior and thought process?
a) The Cognitive-Behavioral School of Thought
b) The Developmental School of Thought
c) The Mental Wellness School of Thought
, d) Humanistic School of Thought ANS A
Which school of thought defines mental health as having congruent and aligned thoughts, feelings, and behavior?
a) Cognitive-Behavioral School of Thought
b) Developmental School of Thought
c) The Mental Wellness School of Thought
d) Humanistic School of Thought ANS D
Which of the following statements is false?
a) It is important for the advisor to understand the client's values and goals
b) Advisors should strive to be active listeners throughout their sessions with clients
c) Advisers should only use open questions during their client meetings
d) Nonverbal cues, or body language, can communicate feelings and attitudes between the client and the advisor
ANS C
All of the following are principles of Modern Portfolio Theory except:
a) The Mean-Variance portfolio theory governs
b) Markets are inefficient
c) Returns are determined by risk
d) Investors are rational ANS B
Which of the following is probably the start of a closed question?
a) How...
b) Please explain whether...
c) Why...
d) Isn't it true that... ANS D
Which of the following best describes the cognitive bias of herding?
a) Individuals tend to filter information and focus on information that supports their decision
b) The tendency of investors to believe that they can outperform the market based on their beliefs or skills
c) Individuals that mimic the actions or decisions of a larger group, even though the individual may not have
necessarily made the same choice
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