CWM_LEVEL_2 Practice Test Questions

1235 Questions


Section B (2 Mark)
Mr. Subhash Bansal, a marketing manager is employed with IMFB limited. He took an advance of Rs. 1,20,000 against the salary of Rs. 30,000 per month in the month of March 2007. The gross salary of Mr Bansal for the assessment year 2007-08 shall be:


A. Rs. 3,60,000


B. Rs. 4,80,000


C. Rs. 2,40,000


D. Rs. 3,80,000





Section B (2 Mark)
Ms. Shalini Bhargav plans to purchase a property having a projected annual income for three year is Rs 20,000 with 12 percent expected return and expect to sell it at the end of three years for Rs 2,70,000. Compute the present value of the property.


A. Rs. 2,40,217


B. Rs. 2,45,982


C. Rs. 1,94,646


D. Rs. 2,52,435





Section A (1 Mark)
________ bias means that investors are too slow in updating their beliefs in response to evidence.


A. Framing


B. Regret avoidance


C. Overconfidence


D. Conservatism





Section A (1 Mark)
Endorsements modify


A. Life & Health Insurance contracts


B. Property & Liability Insurance contracts


C. Both of the above


D. None of the above





Section A (1 Mark)
A testator sometimes make two wills one relating to his property in his native country and other relating to his property in some foreign country this type of will is called


A. Duplicate will


B. Sham will


C. Holograph will


D. Concurrent will





Section C (4 Mark)
Read the senario and answer to the question.
Nimita purchased 500 shares of ABC Ltd., a listed company at Rs. 45 per share on Sep. 15,2002. The company offered to buy back its shares on June 15, 2009 which Nimita accepted at a price of Rs. 75 per share on Jul 1, 2009. What is the tax liability in the hands of Nimita for this transaction for Assessment Year 2010-11? Cost inflation indices are 2002-03: 447 and 2009-10 632. (Ignore Education Cess)


A. Rs. 1,140


B. Rs. 3,000


C. Rs. 1,500


D. Nil





Section A (1 Mark)
All of the following are examples of excise taxes except:


A. Cigarette Taxes


B. Alcohol Taxes


C. Property Taxes


D. Gasoline Taxes





Section A (1 Mark)
If a married couple (or civil partners) receive joint income, the amount of that income will normally be divided equally between them for tax purposes. True or False?


A. TRUE


B. FALSE





Section A (1 Mark)
Single men trade far more often than women. This is due to greater ________ among men.


A. Framing


B. Regret avoidance


C. Overconfidence


D. Conservatism





Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:

• $ 142700 in US dollars and he is a US citizen (married Individual Filing Joint returns and Surviving Spouses)
• $ 67250 in SGD and he is a citizen of Singapore


A. 27735 USD and 5716.25 SGD


B. 28460.50 USD and 15680 SGD


C. 24580.50 USD and 16100 SGD


D. 26480 USD and 15870 SGD





Section A (1 Mark)
…………………. Is implied in favor of the party creating it


A. Express trust


B. Resulting trust


C. Constructive trust


D. Pre-catory trust





Section A (1 Mark)
Conservative retirees likely have ____ than they did early in their careers.


A. More small-cap stocks


B. More international stocks


C. Fewer bonds


D. More bonds






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