CFI CBCA Core Course Assessments & Quizzes Graded A+

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.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