K
CFI CBCA CORE COURSE EXAM
C
ASSESSMENTS & QUIZZES WITH
LO
CORRECT SOLUTIONS A+ GRADED
YC
D
U
ST
,What is the main goal of using business writing fundamentals?
To reduce mental effort
K
Which of the following statements describes a "Capacity" strength or weakness for a company
in the 5 Cs of credit framework?
C
The net profit margin ratio is high.
LO
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.
YC
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?
D
High asset turnover ratio
U
Select the correct formula to calculate the operating margin ratio.
Operating Margin Ratio = EBIT / Revenue
ST
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
K
Which is not one of the three main financial statements?
Statement of equity
C
What does the balance sheet indicate?
The financial strength of the business
LO
Financing activities
Issuing shares and bonds
YC
Operating activities
Payments to suppliers; Depreciation and amortization expense
Investing activities
D
Buying and selling equipment
U
Which is not a section in the financial statement note disclosures?
Management discussion and analysis
ST
Balance Sheet
Retained earnings; Share captial
Income Statement
Rent expense
Cash Flow Statement
Sale of property, plant and equipment
CFI CBCA CORE COURSE EXAM
C
ASSESSMENTS & QUIZZES WITH
LO
CORRECT SOLUTIONS A+ GRADED
YC
D
U
ST
,What is the main goal of using business writing fundamentals?
To reduce mental effort
K
Which of the following statements describes a "Capacity" strength or weakness for a company
in the 5 Cs of credit framework?
C
The net profit margin ratio is high.
LO
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.
YC
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?
D
High asset turnover ratio
U
Select the correct formula to calculate the operating margin ratio.
Operating Margin Ratio = EBIT / Revenue
ST
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
K
Which is not one of the three main financial statements?
Statement of equity
C
What does the balance sheet indicate?
The financial strength of the business
LO
Financing activities
Issuing shares and bonds
YC
Operating activities
Payments to suppliers; Depreciation and amortization expense
Investing activities
D
Buying and selling equipment
U
Which is not a section in the financial statement note disclosures?
Management discussion and analysis
ST
Balance Sheet
Retained earnings; Share captial
Income Statement
Rent expense
Cash Flow Statement
Sale of property, plant and equipment
