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CFI CBCA Account Monitoring and Warning Signs Exams 2026 Questions and Answers

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CFI CBCA Account Monitoring and Warning Signs Exams 2026 Questions and Answers

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CFI CBCA Account Monitoring and
Warning Signs Exams 2026 Questions
and Answers

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?

©COPYRIGHT 2025, ALL RIGHTS RESERVED 1

,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

Identifying Warning Signs

Session Objectives - Answer --Identify common warning signs that a company has

financial difficulties

- Understand symptoms and causes of corporate decline

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



©COPYRIGHT 2025, ALL RIGHTS RESERVED 2

, • 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


©COPYRIGHT 2025, ALL RIGHTS RESERVED 3

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