CFI CBCA Core Course Exam Questions And Answers (Verified And
Updated)(2025)
What is the main goal of using business writing fundamentals? - (answers)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? - (answers)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? - (answers)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? - (answers)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? -
(answers)High asset turnover ratio
Select the correct formula to calculate the operating margin ratio. - (answers)Operating Margin
眼睛”主题的中文文章？
Ratio = EBIT / Revenue
Select the correct formula to calculate the inventory turnover ratio. - (answers)Inventory
Turnover Ratio = Cost of Goods Sold / Average Inventory
Which of the following most likely indicates strong "Capital" for a company? -
(answers)Unutilized lines of credit or loans
Which of the following statements on collateral is NOT correct? - (answers)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? -
(answers)PEST analysis
Select the loan contract with the lowest risk. - (answers)A demand loan with monthly payments
secured by assets
Which is not one of the three main financial statements? - (answers)Statement of equity
What does the balance sheet indicate? - (answers)The financial strength of the business
Financing activities - (answers)Issuing shares and bonds
Operating activities - (answers)Payments to suppliers; Depreciation and amortization expense
Investing activities - (answers)Buying and selling equipment
Which is not a section in the financial statement note disclosures? - (answers)Management
discussion and analysis
眼睛”主题的中文文章？
Balance Sheet - (answers)Retained earnings; Share captial
Income Statement - (answers)Rent expense
Cash Flow Statement - (answers)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? - (answers)$2.1 million
Intangible assets - (answers)Items of value, which have no physical substance, that are used to
generate revenues
, Authorized shares - (answers)The total number of shares a company can sell
Contingencies - (answers)Events that may or may not happen, depending on certain
circumstances
Commitments - (answers)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? - (answers)$3,000
What line item is not found in the statement of shareholders' equity? - (answers)Debt issued or
repurchased
What is not true about a partnership? - (answers)Partners cannot be held liable for a debt
Which line item usually accounts for direct labor? - (answers)Cost of goods sold
Select the statements below which are true. Select all that apply. - (answers)Depreciation and
眼睛”主题的中文文章？
amortization are non-cash expenses; A company can be profitable but experience negative cash
flows
What are the 4 types of audit opinions? - (answers)Adverse, unqualified, qualified, and
disclaimer of opinion
Which of the following statements regarding a review engagement is false? - (answers)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). - (answers)Debt to equity ratio; Working capital ratio
Updated)(2025)
What is the main goal of using business writing fundamentals? - (answers)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? - (answers)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? - (answers)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? - (answers)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? -
(answers)High asset turnover ratio
Select the correct formula to calculate the operating margin ratio. - (answers)Operating Margin
眼睛”主题的中文文章？
Ratio = EBIT / Revenue
Select the correct formula to calculate the inventory turnover ratio. - (answers)Inventory
Turnover Ratio = Cost of Goods Sold / Average Inventory
Which of the following most likely indicates strong "Capital" for a company? -
(answers)Unutilized lines of credit or loans
Which of the following statements on collateral is NOT correct? - (answers)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? -
(answers)PEST analysis
Select the loan contract with the lowest risk. - (answers)A demand loan with monthly payments
secured by assets
Which is not one of the three main financial statements? - (answers)Statement of equity
What does the balance sheet indicate? - (answers)The financial strength of the business
Financing activities - (answers)Issuing shares and bonds
Operating activities - (answers)Payments to suppliers; Depreciation and amortization expense
Investing activities - (answers)Buying and selling equipment
Which is not a section in the financial statement note disclosures? - (answers)Management
discussion and analysis
眼睛”主题的中文文章？
Balance Sheet - (answers)Retained earnings; Share captial
Income Statement - (answers)Rent expense
Cash Flow Statement - (answers)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? - (answers)$2.1 million
Intangible assets - (answers)Items of value, which have no physical substance, that are used to
generate revenues
, Authorized shares - (answers)The total number of shares a company can sell
Contingencies - (answers)Events that may or may not happen, depending on certain
circumstances
Commitments - (answers)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? - (answers)$3,000
What line item is not found in the statement of shareholders' equity? - (answers)Debt issued or
repurchased
What is not true about a partnership? - (answers)Partners cannot be held liable for a debt
Which line item usually accounts for direct labor? - (answers)Cost of goods sold
Select the statements below which are true. Select all that apply. - (answers)Depreciation and
眼睛”主题的中文文章？
amortization are non-cash expenses; A company can be profitable but experience negative cash
flows
What are the 4 types of audit opinions? - (answers)Adverse, unqualified, qualified, and
disclaimer of opinion
Which of the following statements regarding a review engagement is false? - (answers)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). - (answers)Debt to equity ratio; Working capital ratio
