Friday Five – 27 September – 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 2019/20, examinable until 31 August 2020.

1. For how long must Client Agreements be held for? Tick all that apply.
   1. 5 years for most forms of business
   2. The duration of the relationship with the client if longer than 5 years
   3. Indefinitely if the case is a pension transfer
   4. 3 years for protection business only

2. Kim is an additional rate taxpayer and has recently created a trust for her 10-year-old daughter Amelia. This produces £150 in gross interest. What is the income tax liability, if any?
   1. Nil
   2. £30
   3. £60
   4. £67.50

3. The International Accounting Standards 19 (IAS 19) laid down a requirement for defined benefit schemes that any scheme surplus or deficit must be shown on the company:
   1. balance sheet and the present value of past service liabilities should reflect equity yields rather than high-quality bond yields.
   2. profit and loss account and the present value of past service liabilities should reflect high-quality bond yields rather than equity yields.
   3. balance sheet and the present value of past service liabilities should reflect high-quality bond yields, rather than equity yields.
   4. profit and loss account and the present value of past service liabilities should reflect equity yields, rather than high-quality bond yields.

4. Norma is about to start receiving benefits from her income protection policy. How will the payments be made to her?
   1. Gross but liable for income tax at her appropriate rates
   2. After the deduction of income tax at her appropriate rates
   3. After the deduction of income tax at basic rate
   4. Gross with no liability for income tax

5. If the Stock market rises by 4% which of the following shares is most likely to rise by more than 4%?
   

   Share	Beta
   A	0.8
   B	0.6
   C	1.2
   D	1

   1. Share A
   2. Share B
   3. Share C
   4. Share D

Answers

1. ABC – See R01 Study Text, Chp 7
   Grab our taster mock exam paper for CII R01. Click here to download.

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

3. C – See R04 Study Text, Chp 4
   Grab our taster mock exam paper for CII R04. Click here to download.

4. D – See R05 Study Text, Chp 6
   Grab our taster mock exam paper for CII R05. Click here to download.

5. C – See J10 Study Text, Chp 8
   Grab our taster mock exam paper for CII J10. 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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.