GLO_CWM_LVL_1 Exam Training Practice Tests (AAFM Chartered Wealth Manager (CWM) Global Examination)]

Question 1

Payback period is

A. Time required for cash flows to recover cost of investment and opportunity cost B. Time required for cash flows to recover the cost of investment C. Time required to recover the operating cost D. None of the above

Correct Answer: B

Question 2

If POA in respect of in moveable property of value more than ......................it must be registered

A. Rs. 100000 B. Rs. 100 C. Rs. 50000 D. Rs. 50

Correct Answer: B

Question 3

A hired a bicycle from B. The written contract contained a clause which read "Nothing in this agreement shall render the owner liable for any personal injuries to the rider of the machine hired". Owing to a defect in the brakes of the cycle, A met with an accident and got injured. Can A recover Damages?

A. No, because it is the rider who has to take care of the brakes B. Any of the above C. No, since a disclaimer by the owner has already been intimated D. Yes, because he is under the duty to take care of the bicycle

Correct Answer: D

Question 4

Which of the following statement is true in relation to life expectancy?

A. I,III and IV B. I,II and IV C. I ,II and III D. All of these

Correct Answer: A

Question 5

Wealth Enhancement is _____________

A. Ways to maximize tax efficiency of current assets and cash flows while achieving capital growth and preservation goals B. Legally structuring the future disposition of current assets to minimize the benefits to chosen beneficiaries C. None of the above D. Using insurance to ensure wealth is protected

Correct Answer: A

Question 6

For calculating the benefit under Entertainment allowance, salary means,

A. Basic Salary B. Basic Salary + DA + commission C. Basic Salary + DA + commission + Bonus D. Basic Salary + DA

Correct Answer: D

Question 7

An assessee was allowed deduction of unrealized rent to the extent of Rs. 40,000 in the past although the total unrealized rent was Rs. 60,000. He is able to recover from the tenant Rs.45,000 during the previous year on account of such unrealized rent. He shall be liable to tax to the extent of:

A. Rs. 25,000 B. Rs. 35,000 C. Nil D. Rs. 45,000

Correct Answer: A

Question 8

Vikrant Juneja gifted his house property to his wife in year 2007. Mrs. Juneja then lets out this house @ Rs.
5000 per month. The income from such house property will be taxable in the hands of:

A. Anyone amongst both of them, whose income is greater. B. Mrs. Juneja C. Vikrant. However income will be computed first as Mrs. Juneja's income and thereafter clubbed in the income of Manish. D. Vikrant, as he will treated as deemed owner & liable to pay tax

Correct Answer: D

Question 9

If a scheme has 45 cr units issued and has a Face Value of Rs. 10 and NAV is at 11.13, unit capital (Rs. Cr) would be equal to

A. 50.85 B. 450 C. 950.85 D. 500.85

Correct Answer: B

AAFM Chartered Wealth Manager (CWM) Global Examination - GLO_CWM_LVL_1 Exam Practice Test