CFI CBCA CORE COURSE
ASSESMENTS & QUIZZES TEST
BANK / 250 + QUESTIONS AND
CORRECT VERIFIED ANSWERS
2025 GRADED A+ LATEST UPDATE
.
2 / 23
1. What is the main goal of using business writing fundamentals?: To reduce mental effort
2. Which of the following statements describes a "Capacity" stre...
CFI CBCA CORE COURSE
ASSESMENTS & QUIZZES TEST
BANK / 250 + QUESTIONS AND
CORRECT VERIFIED ANSWERS
2025 GRADED A+ LATEST UPDATE
.
,1. What is the main goal of using business writing fundamentals?: To reduce mental effort
2. Which of the following statements describes a "Capacity" strength or weak- ness for a company in the 5 Cs of
credit framework?: The net profit margin ratio is high.
3. Which of the following statements describes a "Condition" strength or weakness for a company in the 5 Cs of
credit framework?: The risks associated with the industry are high.
4. Which of the following scenarios would NOT be considered a strength when assessing the management
team as part of evaluating a company's character?: Financial reports are not widely shared and performance
measures have not been identified.
5. Which of the following ratios most likely indicates strong "Capacity" for a company?: High asset turnover
ratio
6. Select the correct formula to calculate the operating margin ratio.: Operating Margin Ratio = EBIT / Revenue
7. Select the correct formula to calculate the inventory turnover ratio.: Inven- tory Turnover Ratio = Cost of Goods
Sold / Average Inventory
8. Which of the following most likely indicates strong "Capital" for a compa- ny?: Unutilized lines of credit or
loans
9. Which of the following statements on collateral is NOT correct?: Collateral can be used as the main determinant
of a credit decision.
10. Which of the following tools or methods is used to assess the general business environment?: PEST
analysis
11. Select the loan contract with the lowest risk.: A demand loan with monthly payments secured by assets
12. Which is not one of the three main financial statements?: Statement of equity
13. What does the balance sheet indicate?: The financial strength of the business
14. Financing activities: Issuing shares and bonds
15. Operating activities: Payments to suppliers; Depreciation and amortization expense
16. Investing activities: Buying and selling equipment
17. Which is not a section in the financial statement note disclosures?: Man- agement discussion and analysis
18. Balance Sheet: Retained earnings; Share captial
19. Income Statement: Rent expense
20. Cash Flow Statement: Sale of property, plant and equipment
, 21. 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?-
: $2.1 million
22. Intangible assets: Items of value, which have no physical substance, that are used to generate revenues
23. Authorized shares: The total number of shares a company can sell
24. Contingencies: Events that may or may not happen, depending on certain circumstances
25. Commitments: Future obligations that a company has agreed to
26. 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?: $3,000
27. What line item is not found in the statement of shareholders' equity?: Debt issued or repurchased
28. What is not true about a partnership?: Partners cannot be held liable for a debt
29. Which line item usually accounts for direct labor?: Cost of goods sold
30. Select the statements below which are true. Select all that apply.: Depreci- ation and amortization are non-cash
expenses; A company can be profitable but experience negative cash flows
31. What are the 4 types of audit opinions?: Adverse, unqualified, qualified, and disclaimer of opinion
32. Which of the following statements regarding a review engagement is false?: A review engagement is used for
financial statements prepared for internal use
33. Select the following key lending ratios used to evaluate the financial ca- pacity of a business (select all that
apply).: Debt to equity ratio; Working capital ratio
34. Which of the following tools is NOT used to analyze a company?: Porter's five forces
35. Which of the following tools are used to analyze a company?: Firm lifecycle, Ansoff's matrix, SWOT analysis
36. In assessing the PESTEL factors, consumer disposable income is an example of:: Economic factors
37. Read the following passage and determine which of the PESTEL factors the described business is facing:
Fresh and Co. is a local grocery store operating in a small town in Seattle since 2010. The store sells fresh vegetables,
fruits, meat, dairy, and other packaged products. In recent years, people in the neighborhood have shown increasing
demand for organic farm products. In response, many other grocery stores
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