2
CFI CBCA Core Course Assessments & Quizzes with
|| || || || || || || ||
accurate detailed answers || ||
What is the main goal of using business writing fundamentals? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔High
|| || || || || || || || || || || || || || ||
asset turnover ratio
|| ||
Select the correct formula to calculate the operating margin ratio. - ✔✔Operating Margin Ratio =
|| || || || || || || || || || || || || || ||
EBIT / Revenue || ||
Select the correct formula to calculate the inventory turnover ratio. - ✔✔Inventory Turnover
|| || || || || || || || || || || || ||
Ratio = Cost of Goods Sold / Average Inventory
|| || || || || || || ||
Which of the following most likely indicates strong "Capital" for a company? - ✔✔Unutilized
|| || || || || || || || || || || || || ||
lines of credit or loans
|| || || ||
Which of the following statements on collateral is NOT correct? - ✔✔Collateral can be used as
|| || || || || || || || || || || || || || || ||
the main determinant of a credit decision.
|| || || || || ||
,2
Which of the following tools or methods is used to assess the general business environment? -
|| || || || || || || || || || || || || || || ||
✔✔PEST analysis ||
Select the loan contract with the lowest risk. - ✔✔A demand loan with monthly payments secured
|| || || || || || || || || || || || || || ||
by assets
|| ||
Which is not one of the three main financial statements? - ✔✔Statement of equity
|| || || || || || || || || || || || ||
What does the balance sheet indicate? - ✔✔The financial strength of the business
|| || || || || || || || || || || ||
Financing activities - ✔✔Issuing shares and bonds || || || || || ||
Operating activities - ✔✔Payments to suppliers; Depreciation and amortization expense
|| || || || || || || || ||
Investing activities - ✔✔Buying and selling equipment || || || || || ||
Which is not a section in the financial statement note disclosures? - ✔✔Management discussion
|| || || || || || || || || || || || || ||
and analysis ||
Balance Sheet - ✔✔Retained earnings; Share captial|| || || || || ||
Income Statement - ✔✔Rent expense || || || ||
Cash Flow Statement - ✔✔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? - ✔✔$2.1 million
|| || || || || || || || || || ||
,2
Intangible assets - ✔✔Items of value, which have no physical substance, that are used to generate
|| || || || || || || || || || || || || || || ||
revenues
Authorized shares - ✔✔The total number of shares a company can sell || || || || || || || || || || ||
Contingencies - ✔✔Events that may or may not happen, depending on certain circumstances || || || || || || || || || || || ||
Commitments - ✔✔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? - ✔✔$3,000
|| || || || || || ||
What line item is not found in the statement of shareholders' equity? - ✔✔Debt issued or
|| || || || || || || || || || || || || || || ||
repurchased
What is not true about a partnership? - ✔✔Partners cannot be held liable for a debt
|| || || || || || || || || || || || || || ||
Which line item usually accounts for direct labor? - ✔✔Cost of goods sold
|| || || || || || || || || || || ||
Select the statements below which are true. Select all that apply. - ✔✔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? - ✔✔Adverse, unqualified, qualified, and disclaimer of
|| || || || || || || || || || || || || || ||
opinion
Which of the following statements regarding a review engagement is false? - ✔✔A review
|| || || || || || || || || || || || || ||
engagement is used for financial statements prepared for internal use || || || || || || || || ||
, 2
Select the following key lending ratios used to evaluate the financial capacity of a business (select
|| || || || || || || || || || || || || || ||
all that apply). - ✔✔Debt to equity ratio; Working capital ratio
|| || || || || || || || || || ||
Which of the following tools is NOT used to analyze a company? - ✔✔Porter's five forces
|| || || || || || || || || || || || || || ||
Which of the following tools are used to analyze a company? - ✔✔Firm lifecycle, Ansoff's
|| || || || || || || || || || || || || || ||
matrix, SWOT analysis || ||
In assessing the PESTEL factors, consumer disposable income is an example of: - ✔✔Economic
|| || || || || || || || || || || || || ||
factors
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 and supermarkets have started selling organic vegetables and fruits grown by
|| || || || || || || || || || || || || ||
local US farmers. - ✔✔Social factors
|| || || || ||
Read the following passage and determine which of the PESTEL factors the described business is
|| || || || || || || || || || || || || || ||
facing:
Mountain Transportation is a trucking company that provides in-door deliveries of electronic
|| || || || || || || || || || || ||
products purchased through large consumer electronics retailers in the US. Shawn, a truck driver
|| || || || || || || || || || || || || ||
at Mountain Transportation, has filed a lawsuit with the company regarding a violation of the
|| || || || || || || || || || || || || || ||
Hours of Service regulations for commercial drivers. Shawn claims that he has been forced to
|| || || || || || || || || || || || || || ||
work over 70 hours for the past couple weeks, due to a high volume of customer orders.
|| || || || || || || || || || || || || || || || ||
According to the Hours of Service regulations, all commercial drivers may not drive after 60
|| || || || || || || || || || || || || || ||
hours on duty in 7 consecutive days and may only restart after taking 34 or more consecutive
|| || || || || || || || || || || || || || || || ||
hours off duty. || ||
(Source: https://www.fmcsa.dot.gov/regulations/hours-service/summary-hours-service-
||
regulations) - ✔✔Legal factors || || ||
CFI CBCA Core Course Assessments & Quizzes with
|| || || || || || || ||
accurate detailed answers || ||
What is the main goal of using business writing fundamentals? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔High
|| || || || || || || || || || || || || || ||
asset turnover ratio
|| ||
Select the correct formula to calculate the operating margin ratio. - ✔✔Operating Margin Ratio =
|| || || || || || || || || || || || || || ||
EBIT / Revenue || ||
Select the correct formula to calculate the inventory turnover ratio. - ✔✔Inventory Turnover
|| || || || || || || || || || || || ||
Ratio = Cost of Goods Sold / Average Inventory
|| || || || || || || ||
Which of the following most likely indicates strong "Capital" for a company? - ✔✔Unutilized
|| || || || || || || || || || || || || ||
lines of credit or loans
|| || || ||
Which of the following statements on collateral is NOT correct? - ✔✔Collateral can be used as
|| || || || || || || || || || || || || || || ||
the main determinant of a credit decision.
|| || || || || ||
,2
Which of the following tools or methods is used to assess the general business environment? -
|| || || || || || || || || || || || || || || ||
✔✔PEST analysis ||
Select the loan contract with the lowest risk. - ✔✔A demand loan with monthly payments secured
|| || || || || || || || || || || || || || ||
by assets
|| ||
Which is not one of the three main financial statements? - ✔✔Statement of equity
|| || || || || || || || || || || || ||
What does the balance sheet indicate? - ✔✔The financial strength of the business
|| || || || || || || || || || || ||
Financing activities - ✔✔Issuing shares and bonds || || || || || ||
Operating activities - ✔✔Payments to suppliers; Depreciation and amortization expense
|| || || || || || || || ||
Investing activities - ✔✔Buying and selling equipment || || || || || ||
Which is not a section in the financial statement note disclosures? - ✔✔Management discussion
|| || || || || || || || || || || || || ||
and analysis ||
Balance Sheet - ✔✔Retained earnings; Share captial|| || || || || ||
Income Statement - ✔✔Rent expense || || || ||
Cash Flow Statement - ✔✔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? - ✔✔$2.1 million
|| || || || || || || || || || ||
,2
Intangible assets - ✔✔Items of value, which have no physical substance, that are used to generate
|| || || || || || || || || || || || || || || ||
revenues
Authorized shares - ✔✔The total number of shares a company can sell || || || || || || || || || || ||
Contingencies - ✔✔Events that may or may not happen, depending on certain circumstances || || || || || || || || || || || ||
Commitments - ✔✔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? - ✔✔$3,000
|| || || || || || ||
What line item is not found in the statement of shareholders' equity? - ✔✔Debt issued or
|| || || || || || || || || || || || || || || ||
repurchased
What is not true about a partnership? - ✔✔Partners cannot be held liable for a debt
|| || || || || || || || || || || || || || ||
Which line item usually accounts for direct labor? - ✔✔Cost of goods sold
|| || || || || || || || || || || ||
Select the statements below which are true. Select all that apply. - ✔✔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? - ✔✔Adverse, unqualified, qualified, and disclaimer of
|| || || || || || || || || || || || || || ||
opinion
Which of the following statements regarding a review engagement is false? - ✔✔A review
|| || || || || || || || || || || || || ||
engagement is used for financial statements prepared for internal use || || || || || || || || ||
, 2
Select the following key lending ratios used to evaluate the financial capacity of a business (select
|| || || || || || || || || || || || || || ||
all that apply). - ✔✔Debt to equity ratio; Working capital ratio
|| || || || || || || || || || ||
Which of the following tools is NOT used to analyze a company? - ✔✔Porter's five forces
|| || || || || || || || || || || || || || ||
Which of the following tools are used to analyze a company? - ✔✔Firm lifecycle, Ansoff's
|| || || || || || || || || || || || || || ||
matrix, SWOT analysis || ||
In assessing the PESTEL factors, consumer disposable income is an example of: - ✔✔Economic
|| || || || || || || || || || || || || ||
factors
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 and supermarkets have started selling organic vegetables and fruits grown by
|| || || || || || || || || || || || || ||
local US farmers. - ✔✔Social factors
|| || || || ||
Read the following passage and determine which of the PESTEL factors the described business is
|| || || || || || || || || || || || || || ||
facing:
Mountain Transportation is a trucking company that provides in-door deliveries of electronic
|| || || || || || || || || || || ||
products purchased through large consumer electronics retailers in the US. Shawn, a truck driver
|| || || || || || || || || || || || || ||
at Mountain Transportation, has filed a lawsuit with the company regarding a violation of the
|| || || || || || || || || || || || || || ||
Hours of Service regulations for commercial drivers. Shawn claims that he has been forced to
|| || || || || || || || || || || || || || ||
work over 70 hours for the past couple weeks, due to a high volume of customer orders.
|| || || || || || || || || || || || || || || || ||
According to the Hours of Service regulations, all commercial drivers may not drive after 60
|| || || || || || || || || || || || || || ||
hours on duty in 7 consecutive days and may only restart after taking 34 or more consecutive
|| || || || || || || || || || || || || || || || ||
hours off duty. || ||
(Source: https://www.fmcsa.dot.gov/regulations/hours-service/summary-hours-service-
||
regulations) - ✔✔Legal factors || || ||
