Friday Five – 13 January – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

These questions relate to examinable tax year 2016/17, examinable until 31 August 2017.

1. What is the minimum frequency a firm should test its capital adequacy?
   1. Every 3 years
   2. Every 2 years
   3. Every year
   4. Every 6 months

2. What are the main differences between the FTSE All–Share and the FTSE100? Tick all that apply
   1. The FTSE100 is calculated in real-time
   2. The FTSE All-Share is rebalanced annually
   3. The FTSE All- Share is based on market capitalisation
   4. Moving in or out of the FTSE100 could have a considerable impact on a company’s share value

3. Shelley and Paul have two children, Jack aged 2 and Sam aged 1. How much can they as a family invest in ISAs in this tax year?
   1. £30,480
   2. £38,640
   3. £45,720
   4. £49,800

4. Lakeside Trading Ltd, provide their employees with sick pay if they are off work through illness or accident. If an employee receives these benefits, which of the following taxes, if any, will they be liable for on the money they receive?
   1. None – the money is free from liability to tax
   2. National Insurance
   3. Income Tax
   4. Income Tax and National Insurance

5. Jake reached his State pension age on 31 January 2016. He started to draw his State pension, but then on 30 June 2016 decided to defer it. One year later he takes a lump sum payment and recommences receipt of his State pension. What rate of increase will be applied during deferral to Jake’s State pension?
   1. 2% above the Bank of England base rate.
   2. 5.8%.
   3. 6.95%.
   4. 10.4%.

Answers

1. C – See R01 Study Text, Chp 5:1
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B, D – See R02 Study Text, Chp 1:2
   Grab our taster mock exam paper for CII R02. Click here to download.

3. B – See R03 Study Text, Chp 10
   Grab our taster mock exam paper for CII R03. Click here to download.

4. D – See R05 Study Text, Chp 2
   Grab our taster mock exam paper for CII R05. Click here to download.

5. D – See R08 Study Text, Chp 5
   Grab our taster mock exam paper for CII R08. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)