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CFI CBCA Core Course Assessments & Quizzes with correct answers
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CFI CBCA Core Course Assessments & Quizzes with correct answers
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CFI CBCA Core Course Assessments & Quizzes withcorrect answers
What is the main goal of using business writing fundamentals? Correct
Answer-To reduce mental effort
Which of the following statements describes a "Capacity" strength or
weakness for a company in the 5 Cs of credit framework? Correct
Answer-The net profit margin ratio is high.
Which of the following statements describes a "Condition" strength or
weakness for a company in the 5 Cs of credit framework? Correct
Answer-The risks associated with the industry are high.
Which of the following scenarios would NOT be considered a strength
when assessing the management team as part of evaluating a company's
character? Correct Answer-Financial reports are not widely shared and
performance measures have not been identified.
Which of the following ratios most likely indicates strong "Capacity" for
a company? Correct Answer-High asset turnover ratio
Select the correct formula to calculate the operating margin ratio.
Correct Answer-Operating Margin Ratio = EBIT / Revenue
,Select the correct formula to calculate the inventory turnover ratio.
Correct Answer-Inventory Turnover Ratio = Cost of Goods Sold /
Average Inventory
Which of the following most likely indicates strong "Capital" for a
company? Correct Answer-Unutilized lines of credit or loans
Which of the following statements on collateral is NOT correct? Correct
Answer-Collateral can be used as the main determinant of a credit
decision.
Which of the following tools or methods is used to assess the general
business environment? Correct Answer-PEST analysis
Select the loan contract with the lowest risk. Correct Answer-A demand
loan with monthly payments secured by assets
Which is not one of the three main financial statements? Correct
Answer-Statement of equity
What does the balance sheet indicate? Correct Answer-The financial
strength of the business
Financing activities Correct Answer-Issuing shares and bonds
,Operating activities Correct Answer-Payments to suppliers;
Depreciation and amortization expense
Investing activities Correct Answer-Buying and selling equipment
Which is not a section in the financial statement note disclosures?
Correct Answer-Management discussion and analysis
Balance Sheet Correct Answer-Retained earnings; Share captial
Income Statement Correct Answer-Rent expense
Cash Flow Statement Correct Answer-Sale of property, plant and
equipment
If a company has net assets equal to $3.25 million but is sold for $5.35
million, how much goodwill does the acquirer record on their balance
sheet? Correct Answer-$2.1 million
Intangible assets Correct Answer-Items of value, which have no physical
substance, that are used to generate revenues
Authorized shares Correct Answer-The total number of shares a
company can sell
, Contingencies Correct Answer-Events that may or may not happen,
depending on certain circumstances
Commitments Correct Answer-Future obligations that a company has
agreed to
If a company issues 60,000 shares at $0.25 each but the shares have a
par value of $0.20 each, what is the resulting contributed surplus?
Correct Answer-$3,000
What line item is not found in the statement of shareholders' equity?
Correct Answer-Debt issued or repurchased
What is not true about a partnership? Correct Answer-Partners cannot be
held liable for a debt
Which line item usually accounts for direct labor? Correct Answer-Cost
of goods sold
Select the statements below which are true. Select all that apply. Correct
Answer-Depreciation and amortization are non-cash expenses; A
company can be profitable but experience negative cash flows
What are the 4 types of audit opinions? Correct Answer-Adverse,
unqualified, qualified, and disclaimer of opinion
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