Friday Five – 25 March – 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 2015/16, examinable until 31 August 2016.

1. At what point when dealing with life assurance is acceptance regarded as having taken place?
   1. On producing a quotation
   2. At the end of the cooling off period
   3. On receipt of the life office’s acceptance letter
   4. Payment of the first premium

2. Mark earns a basic salary of £50,000 and also receives self-employed profits of £15,000. In this tax year, what is Mark’s total liability to income tax?
   1. £15,403
   2. £15,689
   3. £21,760
   4. £26,000

3. Following 18 months of membership. Neil is leaving his firm’s occupational money purchase scheme. At the point of leaving he had contributed £24,000 gross; a figure matched by the employer. Neil, a higher rate taxpayer, may be offered a net refund of:
   1. £18,000.
   2. £14,400.
   3. £28,800.
   4. £36,000.

4. How does commercial paper differ from treasury bills?
   1. Commercial paper is issued at a discount to maturity value
   2. Commercial paper is short-term
   3. Commercial paper typically has higher yields
   4. The purpose of Treasury bills is to fund daily cash flows

5. A company has been paid 100,000 euros for goods and wants to convert this to sterling. If the GBP:EUR quote is 1.2503/8 what amount would the company receive?
   1. £79,980.80
   2. £79,968.01
   3. £79,948.83
   4. £79,929.66

Answers

1. D – See R01 Study Text, Chp 3, Section C2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. A – See R03 Study Text, Chp 1, Section I1
   Grab our taster mock exam paper for CII R03. Click here to download.

3. A – See R04 Study Text, Chp 4.2, Section F1
   Grab our taster mock exam paper for CII R04. Click here to download.

4. C – See J10 Study Text, Chp 2:1 Section A2A
   Grab our taster mock exam paper for CII J10. Click here to download.

5. C – See J12 Study Text, Chp 3 Section D1
   Grab our taster mock exam paper for CII J12. 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!)