Gobeil’s Collection of 1,000 Questions™ - CFP
These are the 1,000+ multiple-choice questions and detailed solutions that have helped over 15,000 candidates prepare for preparing to write the Canadian Personal Financial Planning Examinations. This study aid is a learning tool, as well as a test of your preparation.
Windows or Mac Software
The Software will run on a PC running Windows XP, Vista, 7, 8 or 10; or on a Mac running OS X 10.8 or higher. You do not connect to the internet while studying.
You can view three sample questions here.
Questions by Topic
The questions are presented to you by topic.
- Financial Management - 37 questions
- Home Ownership - 39 questions
- Education Planning - 57 questions
- Income Tax Planning - 223 questions
- Investment Planning - 245 questions
- Retirement Planning - 163 questions
- Risk Management - 133 questions
- Estate Planning and Family Law - 168 questions
- Financial Planning Practices - 70 questions
Each question includes a description of a client situation.
For example, “Your client, Darlene, runs a summer resort, and owns a number of boats and motors that she lets the customers use. She originally paid $12,000 for this equipment, which falls into Class 7 with a maximum capital cost allowance (CCA) rate of 15%. Over the years, she has claimed cumulative capital cost allowance (CCA) on this equipment of $5,800. This year, Darlene sold all of the Class 7 assets for $8,000. What would you advise Darlene?
(A) Darlene realized a recapture of $5,800.
(B) Darlene realized a terminal loss of $4,000.
(C) Darlene realized a recapture of $2,200.
(D) Darlene realized a recapture of $1,800.”
Description of Concepts
The solutions to the questions include a description of the concepts underlying each question.
"Undepreciated capital cost (UCC) is the amount of the capital cost of a property for which the owner has not yet taken an income tax deduction for capital cost allowance (CCA).
Undepreciated capital cost (UCC) is calculated as:
- (capital cost of a property - the cumulative capital cost allowance that has been deducted by the owner); or
- (capital cost - accumulated capital cost allowance).
If you were to sell a rental property and the proceeds of that disposition exceeded your undepreciated capital cost (UCC) for that property, you would realize a recapture of capital cost allowance (CCA) and you must report this amount as rental income.
Whenever you dispose of depreciable property in a class, your undepreciated capital cost (UCC) after disposition is calculated as:
- (the lesser of (the net proceeds of the disposition and the capital cost)).
If the undepreciated capital cost (UCC) after disposition is negative as of the end of a taxation year, the amount must be included in your income for the year as a recapture of capital cost allowance (CCA) (ITA 13(1)). You have claimed capital cost allowances that amount to more than the true decline in the value of the asset.
Thus, you add the excess amount of the capital cost allowance (CCA) claimed back to income as recapture.”
Questions based upon legislation, such as the Income Tax Act, include references to the legislation. Other questions may refer to interpretations in CRA Publications.
If you have no idea as to the answer to a question, you can select “Ask John” and review the concept before answering the question. John is happy to help you make better use of your study time.
Solutions to questions with calculations
The solutions to questions involving calculations include the formulas for the calculation and the values of the various variables.
“Darlene's undepreciated capital cost (UCC) after disposition would be minus $1,800, calculated as:
- (undepreciated capital cost (UCC) before the disposition - (lesser of (proceeds of disposition and capital cost)));
- ((capital cost - accumulated capital cost allowance (CCA)) - (lesser of (proceeds of disposition and capital cost)));
- (($12,000 - $5,800) - (lesser of ($8,000 and $12,000))); or
- ($6,200 - $8,000).
If the undepreciated capital cost (UCC) after disposition is negative, the taxpayer must report the amount as a recapture of CCA.
So, Darlene realized a recapture of $1,800.”
Solutions to questions without calculations
Solutions to questions not involving calculations are quite extensive with an explanation as to why the correct answer is correct and why the wrong answers are wrong. Some of our clients tell us that they learn quite a bit by reviewing all parts of the solution. However, this may be quite time consuming and it would only make sense if you have lots of time.
The Software will randomly select 50 questions and present you with a 1.5 hour exam. The Software marks your answers and shows you the solutions. You can complete any number of practice exams, each based upon a random selection of 50 questions.
Clarifications and Corrections
Our objective is to offer you the best study aids available for the Examination. If want a clarification on some concept, please send an email to firstname.lastname@example.org, identifying the topic and the question number, and describing your concerns.
The study aid has the following features:
- you learn by doing - most of the questions require you to apply your knowledge to a situation, so you learn how to use this knowledge, not just how to memorize definitions;
- each question has a detailed solution, explaining why the correct answer is right, and why the other answers are wrong;
- the distribution of questions by topic area is similar to the distribution of questions on the exam;
- the software keeps track of your score by topic, so you know which subjects you need to work on;
- the software keeps track of your answers unless you tell it that you want to start over;
- you can repeat the questions over and over again;
- you will require from 3 to 4 hours to complete each 100 questions; and
- the interactive format makes studying more interesting.
As a purchaser of Gobeil's Collection™, you are licensed to use the Software until the date of the next FPSC Level 1™ and CFP Examinations.
Gobeil’s Collection of 1,000 Questions™ is a trade mark of D. R. Gobeil & Associates Ltd.
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