CFI CBCA Core Course Assessments &
Quizzes 2026/2027 QUESTIONS AND
CORRECT DETAILED ANSWERS || 100%
GUARANTEED PASS RECENT VERSION
1. If a company has an aim to grow and plans to exit by sale of the business or
flotation, what type of ownership style is this? - ANSWER Business-
oriented
2. What level of strategy would focus on market positioning strategies to gain a
competitive advantage? - ANSWER Business-level
3. Which of the following is an example of a strategy? - ANSWER Create a
promotional offer to increase the sale of food products
4. Which components should be analyzed when assessing the track record of a
company? Select all that apply. - ANSWER Previous statements, Budget vs.
actual, Historic promotional success
5. What is the difference between budget and actual performance called? -
ANSWER Budget variance
6. Which of the following activities impacts the long-term cash flow? -
ANSWER Purchase PP&E
,7. Which of the following strategies is most likely to shorten the working
capital funding gap? - ANSWER Extend payments to suppliers
8. Calculate accounts receivable days based on the information below:
Revenues: 2,500,000
Costs of goods sold: 1,600,000
Days in period: 365
Receivables: 300,000
Inventories: 150,000
Payables: 200,000 - ANSWER 43.8 = (AR/Revenue)*Number of days in
year
9. What's the company's working capital funding gap in days based on the
information below?
Receivable days: 47.2
Inventory days: 34.5
Payable days: 45.6
Days in the period: 365 - ANSWER 36.1 days = inventory days +
receivable days - payable days
10.Based on the information below, how much does the company need to
finance the working capital funding gap and how much is the lender willing
to provide?
Funding gap (days) 35
Days in period 365
Revenues 2,500,000
Cost of goods sold 1,600,000
Receivables balance 300,000 Up to 50%
Inventories balance 150,000 Up to 50% - ANSWER Financing Required =
153,425 = Cost of goods sold * Funding gap (days) / Days in period
Financing Allowed = 225,000 = Receivables + Inventories
,11.The cash conversion cycle measures: - ANSWER The number of days it
takes for a company to turn its resource inputs into cash
12.Calculate the ROI based on the cash flows of each year:
2020 Cash Flows -$2,000
2021 Cash Flows $100
2022 Cash Flows $300
2023 Cash Flows $500
2024 Cash Flows $700
2025 Cash Flows $900 - ANSWER ROI = 25% = 2025 Cum. Cash Flows /
Minimum Cum. Cash Flows
13.Calculate the net cash provided by the operating activities based on the
information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000 - ANSWER 80,000 = Net Income +
Depreciation - Increase in accounts receivable - Increase in inventory +
Increase in accounts payable
14.Calculate the total capital expenditure of 2018 based on the information
below:
2017 PP&E: 43,000
2018 PP&E: 65,000
2017 Depreciation: 10,000
2018 Depreciation: 12,000 - ANSWER = 34,000 = 2018 PP&E - 2017
PP&E + 2018 Depreciation
, 15.Calculate the company's free cash flow for the current year based on the
information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
Capital expenditures: 45,000
Increase in long-term debt: 15,000 - ANSWER Cash from Operations = Net
income + Depreciation - Increase in accounts receivable - Increase in
inventory + Increase in accounts payable = 80,000
Free cash flow = Cash from Operations - Capital Expenditures
Free cash flow = 35,000
16.What is the starting point when conducting a financial analysis of the
performance of a company? - ANSWER Review of company financial
statements
17.With an end goal in mind, what is the purpose for a credit analyst or
commercial banking professional completing a financial analysis? -
ANSWER To understand a company's overall financial health and credit
risk.
18.Which of the following is not a part of completing a vertical analysis? -
ANSWER Comparison of line items between the balance sheet and income
statement
19.Which of the following is a part of completing a vertical analysis? -
ANSWER Comparing line items in a single financial statement to a base
figure; Comparison of the client's profile to another company in the same
credit portfolio; Comparison of the client's profile to their peer group using
third party benchmarks
Quizzes 2026/2027 QUESTIONS AND
CORRECT DETAILED ANSWERS || 100%
GUARANTEED PASS RECENT VERSION
1. If a company has an aim to grow and plans to exit by sale of the business or
flotation, what type of ownership style is this? - ANSWER Business-
oriented
2. What level of strategy would focus on market positioning strategies to gain a
competitive advantage? - ANSWER Business-level
3. Which of the following is an example of a strategy? - ANSWER Create a
promotional offer to increase the sale of food products
4. Which components should be analyzed when assessing the track record of a
company? Select all that apply. - ANSWER Previous statements, Budget vs.
actual, Historic promotional success
5. What is the difference between budget and actual performance called? -
ANSWER Budget variance
6. Which of the following activities impacts the long-term cash flow? -
ANSWER Purchase PP&E
,7. Which of the following strategies is most likely to shorten the working
capital funding gap? - ANSWER Extend payments to suppliers
8. Calculate accounts receivable days based on the information below:
Revenues: 2,500,000
Costs of goods sold: 1,600,000
Days in period: 365
Receivables: 300,000
Inventories: 150,000
Payables: 200,000 - ANSWER 43.8 = (AR/Revenue)*Number of days in
year
9. What's the company's working capital funding gap in days based on the
information below?
Receivable days: 47.2
Inventory days: 34.5
Payable days: 45.6
Days in the period: 365 - ANSWER 36.1 days = inventory days +
receivable days - payable days
10.Based on the information below, how much does the company need to
finance the working capital funding gap and how much is the lender willing
to provide?
Funding gap (days) 35
Days in period 365
Revenues 2,500,000
Cost of goods sold 1,600,000
Receivables balance 300,000 Up to 50%
Inventories balance 150,000 Up to 50% - ANSWER Financing Required =
153,425 = Cost of goods sold * Funding gap (days) / Days in period
Financing Allowed = 225,000 = Receivables + Inventories
,11.The cash conversion cycle measures: - ANSWER The number of days it
takes for a company to turn its resource inputs into cash
12.Calculate the ROI based on the cash flows of each year:
2020 Cash Flows -$2,000
2021 Cash Flows $100
2022 Cash Flows $300
2023 Cash Flows $500
2024 Cash Flows $700
2025 Cash Flows $900 - ANSWER ROI = 25% = 2025 Cum. Cash Flows /
Minimum Cum. Cash Flows
13.Calculate the net cash provided by the operating activities based on the
information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000 - ANSWER 80,000 = Net Income +
Depreciation - Increase in accounts receivable - Increase in inventory +
Increase in accounts payable
14.Calculate the total capital expenditure of 2018 based on the information
below:
2017 PP&E: 43,000
2018 PP&E: 65,000
2017 Depreciation: 10,000
2018 Depreciation: 12,000 - ANSWER = 34,000 = 2018 PP&E - 2017
PP&E + 2018 Depreciation
, 15.Calculate the company's free cash flow for the current year based on the
information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
Capital expenditures: 45,000
Increase in long-term debt: 15,000 - ANSWER Cash from Operations = Net
income + Depreciation - Increase in accounts receivable - Increase in
inventory + Increase in accounts payable = 80,000
Free cash flow = Cash from Operations - Capital Expenditures
Free cash flow = 35,000
16.What is the starting point when conducting a financial analysis of the
performance of a company? - ANSWER Review of company financial
statements
17.With an end goal in mind, what is the purpose for a credit analyst or
commercial banking professional completing a financial analysis? -
ANSWER To understand a company's overall financial health and credit
risk.
18.Which of the following is not a part of completing a vertical analysis? -
ANSWER Comparison of line items between the balance sheet and income
statement
19.Which of the following is a part of completing a vertical analysis? -
ANSWER Comparing line items in a single financial statement to a base
figure; Comparison of the client's profile to another company in the same
credit portfolio; Comparison of the client's profile to their peer group using
third party benchmarks
