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CFI CBCA FINAL EXAM LATEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
What is the starting point when conducting a financial analysis of
the performance of a company? - ANSWER-Review of company
financial statements
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.
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
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
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Financial ratios include: - ANSWER-Coverage, leverage, and
liquidity
The gross profit margin is calculated as... - ANSWER-(Revenue -
COGS) /Revenue
Which of the following are unique features of a balance sheet?
Select ALL that apply. - ANSWER-The asset section is broken
down into two sections: current and non-current assets; Assets
are typically organized in terms of liquidity.
Efficiency ratios are important to look at how efficiently a company
is using its assets. An example of this would be the Asset
Turnover Ratio, which is calculated as... - ANSWER-Net sales
/Total (or net) Assets
Which of the following is not considered a financing activity that
you would see on the cash flow statement? - ANSWER-Additions
of PP&E
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Why might a credit professional test a client's operating line as
some percent other than fully drawn (e.g., 25, 50, or 75%)? Select
ALL that apply. - ANSWER-The client provided detailed
projections of utilization as a source of reference; Historical usage
patterns reveal that it has never been fully utilized in the past; A
credit professional will always use figures based on a fully drawn
operating line
When a credit analyst is reviewing a borrowing request, it can get
complex when multiple credit facilities are involved. Why is a
sources and uses of funds table important for an analyst when
reviewing the request? Select ALL that apply.. - ANSWER-It will
allow for a lender's adjudication team to evaluate the borrowing
request more clearly; It will permit clearer discussions with the
borrower's management team around the borrowing request
For owner-operated borrowers, which of the following statements
is true with respect to understanding management compensation
when calculating debt service coverage? - ANSWER-The analyst
must adjust EBITDA for any drawings considered "non-
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discretionary". Removing these dividends will reduce the debt
service coverage ratio.
Given the table below, calculate the annual debt service obligation
using the PMT function in Microsoft Excel:
Loan Amount $75,000
Interest Rate 4.75%
Periods (Term in Years) 6
Compounding Periods per Year 1
Monthly Payment? - ANSWER-= $14,658.38
What would a low AR days number, compared to the industry,
mean for a company? - ANSWER-Receivables are being
collected efficiently, and customers are paying their debts quickly.
Which of the following statements are true when completing a
horizontal analysis? - ANSWER-Horizontal analysis is usually
performed after vertical analysis.
This analysis can be used to better project future performance
and solvency.
CFI CBCA FINAL EXAM LATEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
What is the starting point when conducting a financial analysis of
the performance of a company? - ANSWER-Review of company
financial statements
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.
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
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
,2|Page
Financial ratios include: - ANSWER-Coverage, leverage, and
liquidity
The gross profit margin is calculated as... - ANSWER-(Revenue -
COGS) /Revenue
Which of the following are unique features of a balance sheet?
Select ALL that apply. - ANSWER-The asset section is broken
down into two sections: current and non-current assets; Assets
are typically organized in terms of liquidity.
Efficiency ratios are important to look at how efficiently a company
is using its assets. An example of this would be the Asset
Turnover Ratio, which is calculated as... - ANSWER-Net sales
/Total (or net) Assets
Which of the following is not considered a financing activity that
you would see on the cash flow statement? - ANSWER-Additions
of PP&E
,3|Page
Why might a credit professional test a client's operating line as
some percent other than fully drawn (e.g., 25, 50, or 75%)? Select
ALL that apply. - ANSWER-The client provided detailed
projections of utilization as a source of reference; Historical usage
patterns reveal that it has never been fully utilized in the past; A
credit professional will always use figures based on a fully drawn
operating line
When a credit analyst is reviewing a borrowing request, it can get
complex when multiple credit facilities are involved. Why is a
sources and uses of funds table important for an analyst when
reviewing the request? Select ALL that apply.. - ANSWER-It will
allow for a lender's adjudication team to evaluate the borrowing
request more clearly; It will permit clearer discussions with the
borrower's management team around the borrowing request
For owner-operated borrowers, which of the following statements
is true with respect to understanding management compensation
when calculating debt service coverage? - ANSWER-The analyst
must adjust EBITDA for any drawings considered "non-
, 4|Page
discretionary". Removing these dividends will reduce the debt
service coverage ratio.
Given the table below, calculate the annual debt service obligation
using the PMT function in Microsoft Excel:
Loan Amount $75,000
Interest Rate 4.75%
Periods (Term in Years) 6
Compounding Periods per Year 1
Monthly Payment? - ANSWER-= $14,658.38
What would a low AR days number, compared to the industry,
mean for a company? - ANSWER-Receivables are being
collected efficiently, and customers are paying their debts quickly.
Which of the following statements are true when completing a
horizontal analysis? - ANSWER-Horizontal analysis is usually
performed after vertical analysis.
This analysis can be used to better project future performance
and solvency.
