1
CFI CBCA Certification Exam 2026 (Actual Exam) |
Certified Banking and Credit Analyst (CBCA)
Certification Exam | Corporate Finance Institute (CFI)
| Updated Version
What is the main goal of using business writing fundamentals? - (ANSWER)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? - (ANSWER)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? - (ANSWER)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? -
(ANSWER)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? - (ANSWER)High asset turnover ratio
, 2
Select the correct formula to calculate the operating margin ratio. -
(ANSWER)Operating Margin Ratio = EBIT / Revenue
Select the correct formula to calculate the inventory turnover ratio. -
(ANSWER)Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Which of the following most likely indicates strong "Capital" for a company? -
(ANSWER)Unutilized lines of credit or loans
Which of the following statements on collateral is NOT correct? -
(ANSWER)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? - (ANSWER)PEST analysis
Select the loan contract with the lowest risk. - (ANSWER)A demand loan with
monthly payments secured by assets
, 3
Which is not one of the three main financial statements? - (ANSWER)Statement
of equity
What does the balance sheet indicate? - (ANSWER)The financial strength of the
business
Financing activities - (ANSWER)Issuing shares and bonds
Operating activities - (ANSWER)Payments to suppliers; Depreciation and
amortization expense
Investing activities - (ANSWER)Buying and selling equipment
Which is not a section in the financial statement note disclosures? -
(ANSWER)Management discussion and analysis
Balance Sheet - (ANSWER)Retained earnings; Share captial
Income Statement - (ANSWER)Rent expense
, 4
Cash Flow Statement - (ANSWER)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? -
(ANSWER)$2.1 million
Intangible assets - (ANSWER)Items of value, which have no physical substance,
that are used to generate revenues
Authorized shares - (ANSWER)The total number of shares a company can sell
Contingencies - (ANSWER)Events that may or may not happen, depending on
certain circumstances
Commitments - (ANSWER)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? - (ANSWER)$3,000
CFI CBCA Certification Exam 2026 (Actual Exam) |
Certified Banking and Credit Analyst (CBCA)
Certification Exam | Corporate Finance Institute (CFI)
| Updated Version
What is the main goal of using business writing fundamentals? - (ANSWER)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? - (ANSWER)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? - (ANSWER)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? -
(ANSWER)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? - (ANSWER)High asset turnover ratio
, 2
Select the correct formula to calculate the operating margin ratio. -
(ANSWER)Operating Margin Ratio = EBIT / Revenue
Select the correct formula to calculate the inventory turnover ratio. -
(ANSWER)Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Which of the following most likely indicates strong "Capital" for a company? -
(ANSWER)Unutilized lines of credit or loans
Which of the following statements on collateral is NOT correct? -
(ANSWER)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? - (ANSWER)PEST analysis
Select the loan contract with the lowest risk. - (ANSWER)A demand loan with
monthly payments secured by assets
, 3
Which is not one of the three main financial statements? - (ANSWER)Statement
of equity
What does the balance sheet indicate? - (ANSWER)The financial strength of the
business
Financing activities - (ANSWER)Issuing shares and bonds
Operating activities - (ANSWER)Payments to suppliers; Depreciation and
amortization expense
Investing activities - (ANSWER)Buying and selling equipment
Which is not a section in the financial statement note disclosures? -
(ANSWER)Management discussion and analysis
Balance Sheet - (ANSWER)Retained earnings; Share captial
Income Statement - (ANSWER)Rent expense
, 4
Cash Flow Statement - (ANSWER)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? -
(ANSWER)$2.1 million
Intangible assets - (ANSWER)Items of value, which have no physical substance,
that are used to generate revenues
Authorized shares - (ANSWER)The total number of shares a company can sell
Contingencies - (ANSWER)Events that may or may not happen, depending on
certain circumstances
Commitments - (ANSWER)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? - (ANSWER)$3,000
