IFSE EXAM 19
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IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024]
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IFSE Institute Canadian Investment Funds Course - CIFC Exam
Questions
QUESTION NO: 111
Greg, one of your clients, has been advised by a friend to invest in open-end mutual funds. He is not sure about the differences between open
and closed-end funds.
What would you tell Greg about open-end funds?
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A. The number of units is not fixed, and varies with investor demand and redemption orders.
B. Investors holding open-end funds can buy and sell their mutual funds anytime the stock market is open.
C. Units are bought and sold amongst the unitholders.
D. Initial shares in the mutual fund are allotted through an initial public offering (IPO)
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IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024]
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Hide answers/explanation
Correct Answer: A
Explanation
According to the Closed-End Funds vs. Open-End Funds: What's the Difference? - Investopedia, open-end funds are mutual funds that can issue an
unlimited number of shares to investors. The number of units is not fixed, and varies with investor demand and redemption orders. Investors buy and sell
open-end funds directly from the fund company at the net asset value (NAV) of the fund, which is calculated at the end of each trading day. Open-end
funds are not traded on an exchange or in the secondary market.
QUESTION NO: 112
Wilma has always used the services of a tax preparation firm to file her taxes but is skeptical that she has really benefitted. This year she plans to
file her own taxes for the first time.
What would be useful for her to know?
Hide answers/explanation
Correct Answer: A
Explanation
Tax deductions are amounts that reduce your total income before calculating your tax payable. They lower your marginal tax rate, which is the tax rate that
applies to your last dollar of income. For example, if Wilma's total income is $50,000 and she claims $5,000 in tax deductions, her taxable income will be
$45,000 and her marginal tax rate will be lower than if she had no deductions. Therefore, A is the correct answer.
References: All deductions, credits, and expenses - Personal income tax - Canada.ca
A. Wilma's marginal tax rate may be lowered when tax deductions are applied to her total income.
B. Wilma's top marginal tax rate will be applied to every taxable dollar when her tax return is filed.
C. Wilma's tax deductions permit her to reduce her tax payable dollar-for-dollar.
D. Wilma's non-refundable tax credits may only reduce her taxable income dollar-for-dollar.
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IFSE Institute Canadian Investment Funds Course - CIFC Exam Questions [2024]
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QUESTION NO: 113
Pierre buys a call option on a stock. What is the implication of this transaction?
Hide answers/explanation
Correct Answer: A
Explanation
According to the What Is a Call Option and How to Use It With Example - Investopedia, a call option is a contract that gives the buyer the right, but not the
obligation, to buy an underlying stock at a specified price (the strike price) within a specified time period (the expiration date). The seller of a call option is
obligated to sell the stock if the buyer exercises the option. Pierre buys a call option on a stock, which means he has the right to buy the stock if he
exercises the option. He can also choose not to exercise the option or sell it before expiration.
QUESTION NO: 114
Which statement regarding Canada's income tax system is CORRECT?
Hide answers/explanation
Correct Answer: A
A. Pierre has the right to buy the stock if he exercises the option.
B. Pierre is obligated to sell the stock if the option is exercised.
C. Pierre has the right to sell the stock if he exercises the option.
D. Pierre is obligated to buy the stock if the option is exercised.
A. Federal and provincial income tax brackets are both progressive and each respective jurisdiction determines the tax rates that will be used.
B. Once a person's taxable income reaches the next income tax bracket level, all income is subject to be taxed at the higher tax rate.
C. Tax credits will reduce an individual's taxable income and may lower that person's top marginal tax rate.
D. After federal and provincial tax rates have been applied to a person's taxable income, tax deductions are then applied to reduce taxes.
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Explanation
Canada's income tax system is based on a progressive tax structure, which means that individuals pay higher tax rates as their income increases. There
are different tax brackets for different income levels, and each bracket has a corresponding tax rate. The federal government and each provincial or
territorial government set their own tax rates and brackets, which may vary depending on the jurisdiction. Therefore, individuals pay both federal and
provincial or territorial income tax, based on their taxable income and the tax rates applicable to their income brackets in their respective jurisdictions12
References = Canadian Investment Funds Course, Unit 5: Types of Investments, Lesson 6: Taxation, Section
5.6.1: Income Tax 1; CIFC prepkit, Chapter 5: Types of Investments, Question 5.6.1 2
QUESTION NO: 115
Jacinta is a Dealing Representative with WealthSource Partners Inc., a mutual fund dealer registered in Ontario. Jacinta meets with her friend
Saabir, who is a licensed insurance agent. Saabir asks Jacinta for a list of Jacinta's clients so that Saabir can reach out to them to ensure that
their insurance needs are being met.
Which of the following statements about Jacinta sharing the list with Saabir is CORRECT?
Hide answers/explanation
Correct Answer: D
Explanation
The correct answer is D. If Jacinta shares the list with Saabir without obtaining the clients' prior consent, she will be in breach of the Personal Information
Protection and Electronic Documents Act (PIPEDA).
PIPEDA is the federal privacy law for private-sector organizations in Canada. It sets out the ground rules for how businesses must handle personal
information in the course of their commercial activity. One of the key principles of PIPEDA is consent. This means that organizations must obtain
A. If Saabir obtains prior consent from Jacinta to use the clients' personal information for a reasonable purpose, Saabir can contact the clients
to inquire about their insurance needs.
B. If Saabir promptly discloses that he has collected the clients' personal information from Jacinta without their consent, Saabir can use the
information for a new stated purpose.
C. If Jacinta determines that there is a reasonable purpose for sharing the list with Saabir, she can disclose the information to Saabir without
obtaining prior consent from the clients.
D. If Jacinta shares the list with Saabir without obtaining the clients' prior consent, she will be in breach of the Personal Information Protection
and Electronic Documents Act (PIPEDA).
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10:04
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ATG-110-20A01: Financial Accounting (Session II Summer 2021)
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Complete this question by entering your answers in the tabs below.
Required C
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b. As of December 31, year 1, what income taxes has Wharton paid on the increase in value of these investments?
c. Prepare a journal entry at January 4, year 2, to record the cash sale of these investments at $220,000.
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Required B
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
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O 95220 equivalent units.
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O 70200 equivalent units.
O 85200 equivalent units.
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Question 15
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Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total
materials costs are $91000. How much is the conversion cost per unit?
O $17.52.
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O $30.33
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- My first question is...are my general journal entries correct? Second question is...What number would be the warrant revenue for year 1? Please see attachments, Thank you!arrow_forwardCan you please help me create a citation fot this link using apa 7th edition https://www.stats.gov.kn/wp-content/uploads/2017/11/The-COVID-Impact-Tourism-2019-20-April.pdfarrow_forwardPlease tell me you can help me out with this problem???arrow_forward
- Question is attached in the screesnhot thanks for the hlep l13pyl32yp42okp2ojhtihjlidgn qgoiqyh90yh1391h3teq g lolarrow_forwardeducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewcon... It sec Question 2 - Ch 7 h/w - mkt sec - Connect Required B Complete this question by entering your answers in the tabs below. Required C Saved b. As of December 31, year 1, what income taxes has Wharton paid on the increase in value of these investments? c. Prepare a journal entry at January 4, year 2, to record the cash sale of these investments at $220,000. d. What effect will the sale recorded in part c have on Wharton's tax obligation for year 2? Required D Wharton, Inc., pays income taxes on capital gains (including gains on marketable securities) at a rate of 30 percent. At December 31, year 1, the company owns marketable securities that cost $180,000 but have a current market value of $220,000. Required B Prev ‒‒‒‒‒‒‒‒‒‒‒ As of December 31, year 1, what income taxes has Wharton paid on the increase in value of these investments? Income taxes paid on the increase in the…arrow_forwardA v2.cengagenow.com da EXCHANGE PASSWORD REQUIRED 1 FA2021 - Fina... X CengageNOWv2 | Online teaching and learning reso. 11m O https://www.toolingu.com/Ims/contentplayer/?corpo. Enter your password for "hjmolin" in Internet Accounts. еВook Show Me How Note Payable and Accrued Interest Fairborne Company borrowed $600,000 on an 8%, interest-bearing note on October 1, 2023. Fairborne ends its fiscal year on December 31. The note was paid with interest on May 1, 2024. Required: 1. Prepare the entry for this note on October 1, 2023. If an amount box does not require an entry, leave it blank. 2023 Oct. 1 Cash Notes Payable (Record issuance of note) Feedback 2. Prepare the adjusting entry for this note on December 31, 2023. If an amount box does not require an entry, leave it blank. 2023 Dec. 31 Interest Expense Interest Payable (Record accrued interest) Feedback 3. Indicate how the note and the accrued interest would appear in the balance sheet at December 31, 2023. Among the current…arrow_forward
- My Questions | bartleby b + Camden County College References Chapter 3 Quiz Ha X //camdenccinstructure.com/courses/3788/assignments/35967?module item id=88693 Next> Send to Gradebook < Prev Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) Question 19 -/1 View Policies Current Attempt in Progress A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were: O 95220 equivalent units. O 135300 equivalent units. O 70200 equivalent units. O 85200 equivalent units. eTextbook and Media Attempts: 0 of 1 used Submit Answer Save for Later 11:21 AM 10/4/2019 hp ins prt sc 12 end 11 home f10 delete fg f8 f5 f4 II & num backspace 6 5 lock } { P T U Y home + 96arrow_forward+V My Questions | bartleby b References Chapter 3 Quiz Camden County College camdenccinstructure.com/courses/3788/assignments/35967?module_item id=88693| Next> K Prev Send to Gradebook Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) --/1 Question 15 View Policies Current Attempt in Progress Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total materials costs are $91000. How much is the conversion cost per unit? O $17.52. O $4.70. $12.82. O $30.33 eTextbook and Media Submit Answer Save for Later Attempts: 0 of 1 used 11:10 A 10/4/20 hp ins prt sc end home f12 11 DI delete f9 f8 f7 f6 fs 10 + & % num backspace 6 7 lock 5 { P T U Y II 96arrow_forwardPrepare jourarrow_forward
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