CFI CBCA UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS

CFI CBCA UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
CFI CBCA Questions and Answers Verified Solutions
Latest Update 2026/2027

Question:
Which of the following statements describes a "Capacity" strength or weakness for a company in the
5 Cs of credit framework?

Answer:
The net profit margin ratio is high.



Question:
Which of the following statements describes a "Condition" strength or weakness for a company in
the 5 Cs of credit framework?

Answer:
The risks associated with the industry are high.



Question:
Which of the following scenarios would NOT be considered a strength when assessing the
management team as part of evaluating a company's character?

Answer:
Financial reports are not widely shared and performance measures have not been identified.



Question:
Which of the following ratios most likely indicates strong "Capacity" for a company?

Answer:
High asset turnover ratio



Question:

,Select the correct formula to calculate the operating margin ratio.

Answer:
Operating Margin Ratio = EBIT / Revenue



Question:
Select the correct formula to calculate the inventory turnover ratio.

Answer:
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory



Question:
Which of the following most likely indicates strong "Capital" for a company?

Answer:
Unutilized lines of credit or loans



Question:
Which of the following statements on collateral is NOT correct?

Answer:
Collateral can be used as the main determinant of a credit decision.



Question:
Which of the following tools or methods is used to assess the general business environment?

Answer:
PEST analysis



Question:
Select the loan contract with the lowest risk.

,Answer:
A demand loan with monthly payments secured by assets



Question:
Which is not one of the three main financial statements?

Answer:
Statement of equity



Question:
What does the balance sheet indicate?

Answer:
The financial strength of the business



Question:
Financing activities

Answer:
Issuing shares and bonds



Question:
Operating activities

Answer:
Payments to suppliers; Depreciation and amortization expense



Question:
Investing activities

Answer:

, Buying and selling equipment



Question:
Which is not a section in the financial statement note disclosures?

Answer:
Management discussion and analysis



Question:
Balance Sheet

Answer:
Retained earnings; Share captial



Question:
Income Statement

Answer:
Rent expense



Question:
Cash Flow Statement

Answer:
Sale of property, plant and equipment



Question:
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?

Answer:
$2.1 million