CFI CBCA Account Monitoring and Warning Signs Exam Questions With Correct Answers

CFI /




CBCA
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Account
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Monitoring
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and
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Warning
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Signs Exam Questions With Correct Answers
/ // // // // //




Developing //an //Action //Plan //

Consider /
/the /


/following /


/when //developing //an //action //plan //to //address //the //root //problem: //- //verified //answer(s)-


✔✔Working //Together //

Is //the //client //open //to //working //together //to //resolve //the //problem? //



Restructure //the //Loan //

Is /
/there /


/an /


/option //to //restructure //the //loan //in //a //way //that //will //help //alleviate //repayment //pressures?




Strategies //

Will /
/the /


/client /

,/accept /
/strategies /


/such /


/as /


/using //a //cash //flow //budget //and //reducing //operating //costs, //including //a //reduction //in //salary?




Account //Monitoring //and //Warning //Signs

Identify //Early //Warning //Signs

Course //Objectives //- //verified //answer(s)-✔✔-
Identify //common //warning //signs //that //a //company //has //financial //difficulties //

-Apply //quantitative //models //to //predict //if //companies //will //run //into //financial //difficulty //

-Understand //how //to //deal //with //problem //accounts



Identifying //Warning //Signs

Session //Objectives //- //verified //answer(s)-✔✔-
Identify //common //warning //signs //that //a //company //has

financial //difficulties

- //Understand //symptoms //and //causes //of //corporate //decline



Annual //Credit //Review //Process //

An /
/annual /


/review //is //typically //performed //using //the //following //components: //- //verified //answer(s)-


✔✔1. //Financial //Statement //Review //

• //Comparative //analysis //

• //Working //capital //analysis //

• //Cash //flow //analysis //

• //Financial //covenant //analysis //

, 2. //Security //Review

• //Account //receivables

• //Inventory //

• //Equipment //

• //Real //estate //

• //Personal //guarantees //& //covenants



3. //Management //Review

• //Change //in //management //structure

• //Decision //making //abilities //

• //Budget //& //results //monitoring



4. //Business //Review

• //Opportunities //

• //Threat //

• //Capacity



Identify //Warning //Signs

Root //Causes //and //Impact //- //verified //answer(s)-✔✔Root //Causes //

• //Low //staff //morale //and //poor //working //conditions //

• //Loss //of //a //key //customer //

• //Weak //credit //controls



Impact

• //Increasing //staff //turnover

• //Declining //sales //and //profitability