Friday Five – 7 August 2015 – 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.
These questions relate to examinable tax year 2014/15, examinable until 31 August 2015.
- Indices are usually adjusted for the ‘free float’ of a stock. What is the ‘free float’?
- The number of shares available for trading on the stock market
- The number of shares held by controlling directors
- The number of large cross holdings available
- The number of shares held by the government
- John has a defined contribution AVC, whereas Tom’s AVC is on an “added years” basis. In which area, will Tom’s arrangement differ from John’s?
- Tax relief on contributions.
- Some of the benefit can be in the form of tax free cash.
- Minimum pension age.
- Inability to draw the benefit independent of the main scheme.
- What is a difference between a local authority bond and a corporate bond?
- Corporate bonds pay interest net of 20% tax
- Interest received from a local authority bond is fully taxable as savings income
- In certain circumstances losses may be allowable for corporate bonds
- A corporate bond pays interest for a fixed term and repays the capital at maturity
- Norma is about to start receiving benefits from her income protection policy. How will the payments be made to her?
- Gross but liable for income tax at her appropriate rates
- After the deduction of income tax at her appropriate rates
- After the deduction of income tax at basic rate
- Gross with no liability for income tax
- What are the FCA Principles for Businesses?
- Guidelines issued by the FCA to all authorised firms
- Statements of the fundamental obligations of all authorised firms
- The basis behind many of the FCA rules
- Management control systems for authorised firms
- A – See J10 Study Text, Chp 9 Section A2A
Grab our taster mock exam paper for CII J10. Click here to download.
- D – See R04 Study Text, Chp 4.1 Section A2A
Grab out taster mock exam paper for CII R04. Click here to download.
- C – See R03 Study Text, Chp 9 Section A4B
Grab our taster mock exam paper for CII R03. Click here to download.
- D – See R05 Study Text, Chp 6 Section G
Grab our taster mock exam paper for CII R05. Click here to download.
- B – See R01 Study Text, Chp 9 Section A1
Grab our taster mock exam paper for CII R01. 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!)