CFI CBCA FINAL EXAM PREP
2026/2027 COMPLETE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Developing an Action Plan
Consider the following when developing an action plan to address the root
problem: - ANSWER ✔ Working Together
Is the client open to working together to resolve the problem?
Restructure the Loan
Is there an option to restructure the loan in a way that will help alleviate
repayment pressures?
Strategies
Will the client accept strategies such as using a cash flow budget and reducing
operating costs, including a reduction in salary?
2. Account Monitoring and Warning Signs
Identify Early Warning Signs
Course Objectives - ANSWER ✔ -Identify common warning signs that a
company has financial difficulties
,-Apply quantitative models to predict if companies will run into financial
difficulty
-Understand how to deal with problem accounts
3. Identifying Warning Signs
Session Objectives - ANSWER ✔ -Identify common warning signs that a
company has
financial difficulties
- Understand symptoms and causes of corporate decline
4. Annual Credit Review Process
An annual review is typically performed using the following components: -
ANSWER ✔ 1. Financial Statement Review
• Comparative analysis
• Working capital analysis
• Cash flow analysis
• Financial covenant analysis
2. Security Review
• Account receivables
• Inventory
• Equipment
• Real estate
• Personal guarantees & covenants
3. Management Review
• Change in management structure
• Decision making abilities
• Budget & results monitoring
,4. Business Review
• Opportunities
• Threat
• Capacity
5. Credit Administration and Documentation
Session Objectives - ANSWER ✔ Understand the importance of credit
administration and documentation
Understand loan approval documentation
Describe the loan monitoring process and documentation
6. Course Overview - ANSWER ✔ Credit administration
Loan approval documentation
Loan monitoring documentation
7. Credit administration is all about - ANSWER ✔ documentation, ongoing
monitoring, and possibly re-classifying a borrower after a loan has been
made.
8. Documentation
Timely, relevant and thorough documentation is critical for the credit
administration process to work effectively. Three key documentation categories
are: - ANSWER ✔ • Loan Approval documentation
• Security documentation
, • Monitoring documentation
9. Monitoring
The borrower must be carefully monitored and continuously re-assessed. This is
important when changes to the borrower's situation might affect their ability to
repay the loan. Monitoring involves: - ANSWER ✔ • Undertaking regular
reviews of a borrower's financial statements (at least once a year)
• Evaluating financial ratios to continuously assess how this
may impact credit risk
• Evaluating changes in a borrower's business, industry and
management team and how these could impact a borrower's
repayment capacity
10.Re-Classifying
As a borrower's account is monitored it may need to be re-assessed and re-
classified to better reflect the level of credit risk present. Re-classifying
includes: - ANSWER ✔ • Determining the new level of credit risk associated
with a borrower
• Considering changes in security, covenants and loan pricing
to reflect any change in credit risk
11.Credit administration is crucial for - ANSWER ✔ monitoring borrowers,
identifying problems, reducing the risk of credit default, and protecting the
organization if default occurs.
12.Appropriate credit administration and documentation practices allow for: -
ANSWER ✔ Better information for more informed decisions regarding
actions taken towards a borrower.
2026/2027 COMPLETE QUESTIONS
WITH VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Developing an Action Plan
Consider the following when developing an action plan to address the root
problem: - ANSWER ✔ Working Together
Is the client open to working together to resolve the problem?
Restructure the Loan
Is there an option to restructure the loan in a way that will help alleviate
repayment pressures?
Strategies
Will the client accept strategies such as using a cash flow budget and reducing
operating costs, including a reduction in salary?
2. Account Monitoring and Warning Signs
Identify Early Warning Signs
Course Objectives - ANSWER ✔ -Identify common warning signs that a
company has financial difficulties
,-Apply quantitative models to predict if companies will run into financial
difficulty
-Understand how to deal with problem accounts
3. Identifying Warning Signs
Session Objectives - ANSWER ✔ -Identify common warning signs that a
company has
financial difficulties
- Understand symptoms and causes of corporate decline
4. Annual Credit Review Process
An annual review is typically performed using the following components: -
ANSWER ✔ 1. Financial Statement Review
• Comparative analysis
• Working capital analysis
• Cash flow analysis
• Financial covenant analysis
2. Security Review
• Account receivables
• Inventory
• Equipment
• Real estate
• Personal guarantees & covenants
3. Management Review
• Change in management structure
• Decision making abilities
• Budget & results monitoring
,4. Business Review
• Opportunities
• Threat
• Capacity
5. Credit Administration and Documentation
Session Objectives - ANSWER ✔ Understand the importance of credit
administration and documentation
Understand loan approval documentation
Describe the loan monitoring process and documentation
6. Course Overview - ANSWER ✔ Credit administration
Loan approval documentation
Loan monitoring documentation
7. Credit administration is all about - ANSWER ✔ documentation, ongoing
monitoring, and possibly re-classifying a borrower after a loan has been
made.
8. Documentation
Timely, relevant and thorough documentation is critical for the credit
administration process to work effectively. Three key documentation categories
are: - ANSWER ✔ • Loan Approval documentation
• Security documentation
, • Monitoring documentation
9. Monitoring
The borrower must be carefully monitored and continuously re-assessed. This is
important when changes to the borrower's situation might affect their ability to
repay the loan. Monitoring involves: - ANSWER ✔ • Undertaking regular
reviews of a borrower's financial statements (at least once a year)
• Evaluating financial ratios to continuously assess how this
may impact credit risk
• Evaluating changes in a borrower's business, industry and
management team and how these could impact a borrower's
repayment capacity
10.Re-Classifying
As a borrower's account is monitored it may need to be re-assessed and re-
classified to better reflect the level of credit risk present. Re-classifying
includes: - ANSWER ✔ • Determining the new level of credit risk associated
with a borrower
• Considering changes in security, covenants and loan pricing
to reflect any change in credit risk
11.Credit administration is crucial for - ANSWER ✔ monitoring borrowers,
identifying problems, reducing the risk of credit default, and protecting the
organization if default occurs.
12.Appropriate credit administration and documentation practices allow for: -
ANSWER ✔ Better information for more informed decisions regarding
actions taken towards a borrower.
