CFI CBCA CORE COURSE ASSESSMENTS &
QUIZZES QUESTIONS AND ANSWERS
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 |
Cash Flow Statement | |
Sale of property, plant and equipment
| | | | |
If a company has net assets equal to $3.25 million but is sold for $5.35
| | | | | | | | | | | | | |
million, how much goodwill does the acquirer record on their balance
| | | | | | | | | | |
sheet?
|
$2.1 million
|
Intangible assets
| |
, Items of value, which have no physical substance, that are used to generate
| | | | | | | | | | | |
revenues
|
Authorized shares |
The total number of shares a company can sell
| | | | | | | |
Contingencies
|
Events that may or may not happen, depending on certain circumstances
| | | | | | | | | |
Commitments
|
Future obligations that a company has agreed to
| | | | | | |
If a company issues 60,000 shares at $0.25 each but the shares have a par value
| | | | | | | | | | | | | | |
of $0.20 each, what is the resulting contributed surplus?
| | | | | | | | |
$3,000
What line item is not found in the statement of shareholders' equity? Debt
| | | | | | | | | | | |
issued or repurchased
| | |
What is not true about a partnership?
| | | | | |
Partners cannot be held liable for a debt
| | | | | | | |
Which line item usually accounts for direct labor?
| | | | | | |
Cost of goods sold
| | | |
Select the statements below which are true. Select all that apply.
| | | | | | | | | |
Depreciation and amortization are non-cash expenses; A company can be | | | | | | | | |
profitable but experience negative cash flows
| | | | | |
What are the 4 types of audit opinions?
| | | | | | |
Adverse, unqualified, qualified, and disclaimer of opinion | | | | | |
Which of the following statements regarding a review engagement is false?
| | | | | | | | | |
A review engagement is used for financial statements prepared for internal use
| | | | | | | | | | |
Select the following key lending ratios used to evaluate the financial
| | | | | | | | | |
capacity of a business (select all that apply).
| | | | | | | |
Debt to equity ratio; Working capital ratio
| | | | | |
Which of the following tools is NOT used to analyze a company?
| | | | | | | | | | |
QUIZZES QUESTIONS AND ANSWERS
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 |
Cash Flow Statement | |
Sale of property, plant and equipment
| | | | |
If a company has net assets equal to $3.25 million but is sold for $5.35
| | | | | | | | | | | | | |
million, how much goodwill does the acquirer record on their balance
| | | | | | | | | | |
sheet?
|
$2.1 million
|
Intangible assets
| |
, Items of value, which have no physical substance, that are used to generate
| | | | | | | | | | | |
revenues
|
Authorized shares |
The total number of shares a company can sell
| | | | | | | |
Contingencies
|
Events that may or may not happen, depending on certain circumstances
| | | | | | | | | |
Commitments
|
Future obligations that a company has agreed to
| | | | | | |
If a company issues 60,000 shares at $0.25 each but the shares have a par value
| | | | | | | | | | | | | | |
of $0.20 each, what is the resulting contributed surplus?
| | | | | | | | |
$3,000
What line item is not found in the statement of shareholders' equity? Debt
| | | | | | | | | | | |
issued or repurchased
| | |
What is not true about a partnership?
| | | | | |
Partners cannot be held liable for a debt
| | | | | | | |
Which line item usually accounts for direct labor?
| | | | | | |
Cost of goods sold
| | | |
Select the statements below which are true. Select all that apply.
| | | | | | | | | |
Depreciation and amortization are non-cash expenses; A company can be | | | | | | | | |
profitable but experience negative cash flows
| | | | | |
What are the 4 types of audit opinions?
| | | | | | |
Adverse, unqualified, qualified, and disclaimer of opinion | | | | | |
Which of the following statements regarding a review engagement is false?
| | | | | | | | | |
A review engagement is used for financial statements prepared for internal use
| | | | | | | | | | |
Select the following key lending ratios used to evaluate the financial
| | | | | | | | | |
capacity of a business (select all that apply).
| | | | | | | |
Debt to equity ratio; Working capital ratio
| | | | | |
Which of the following tools is NOT used to analyze a company?
| | | | | | | | | | |
