CFI CBCA CORE COURSE ASSESSMENTS & QUIZZES, QUESTIONS AND CORRECT ANSWERS

CFI CBCA CORE COURSE
ASSESSMENTS & QUIZZES,
QUESTIONS AND CORRECT
ANSWERS
WhatA2isA2theA2mainA2goalA2ofA2usingA2businessA2writingA2fundamentals?A2-A2Ans--
ToA2reduceA2mentalA2effort

WhichA2ofA2theA2followingA2statementsA2describesA2aA2"Capacity"A2strengthA2orA2weaknes
sA2forA2aA2companyA2inA2theA25A2CsA2ofA2creditA2framework?A2-A2Ans--
TheA2netA2profitA2marginA2ratioA2isA2high.

WhichA2ofA2theA2followingA2statementsA2describesA2aA2"Condition"A2strengthA2orA2weakne
ssA2forA2aA2companyA2inA2theA25A2CsA2ofA2creditA2framework?A2-A2Ans--
TheA2risksA2associatedA2withA2theA2industryA2areA2high.

WhichA2ofA2theA2followingA2scenariosA2wouldA2NOTA2beA2consideredA2aA2strengthA2whenA
2assessingA2theA2managementA2teamA2asA2partA2ofA2evaluatingA2aA2company'sA2characte
r?A2-A2Ans--
FinancialA2reportsA2areA2notA2widelyA2sharedA2andA2performanceA2measuresA2haveA2notA2
beenA2identified.

WhichA2ofA2theA2followingA2ratiosA2mostA2likelyA2indicatesA2strongA2"Capacity"A2forA2aA2co
mpany?A2-A2Ans--HighA2assetA2turnoverA2ratio

SelectA2theA2correctA2formulaA2toA2calculateA2theA2operatingA2marginA2ratio.A2-A2Ans--
OperatingA2MarginA2RatioA2=A2EBITA2/A2Revenue

SelectA2theA2correctA2formulaA2toA2calculateA2theA2inventoryA2turnoverA2ratio.A2-A2Ans--
InventoryA2TurnoverA2RatioA2=A2CostA2ofA2GoodsA2SoldA2/A2AverageA2Inventory

WhichA2ofA2theA2followingA2mostA2likelyA2indicatesA2strongA2"Capital"A2forA2aA2company?
A2-A2Ans--UnutilizedA2linesA2ofA2creditA2orA2loans


WhichA2ofA2theA2followingA2statementsA2onA2collateralA2isA2NOTA2correct?A2-A2Ans--
CollateralA2canA2beA2usedA2asA2theA2mainA2determinantA2ofA2aA2creditA2decision.

WhichA2ofA2theA2followingA2toolsA2orA2methodsA2isA2usedA2toA2assessA2theA2generalA2busin
essA2environment?A2-A2Ans--PESTA2analysis

SelectA2theA2loanA2contractA2withA2theA2lowestA2risk.A2-A2Ans--
AA2demandA2loanA2withA2monthlyA2paymentsA2securedA2byA2assets

,WhichA2isA2notA2oneA2ofA2theA2threeA2mainA2financialA2statements?A2-A2Ans--
StatementA2ofA2equity

WhatA2doesA2theA2balanceA2sheetA2indicate?A2-A2Ans--
TheA2financialA2strengthA2ofA2theA2business

FinancingA2activitiesA2-A2Ans--IssuingA2sharesA2andA2bonds

OperatingA2activitiesA2-A2Ans--
PaymentsA2toA2suppliers;A2DepreciationA2andA2amortizationA2expense

InvestingA2activitiesA2-A2Ans--BuyingA2andA2sellingA2equipment

WhichA2isA2notA2aA2sectionA2inA2theA2financialA2statementA2noteA2disclosures?A2-A2Ans--
ManagementA2discussionA2andA2analysis

BalanceA2SheetA2-A2Ans--RetainedA2earnings;A2ShareA2captial

IncomeA2StatementA2-A2Ans--RentA2expense

CashA2FlowA2StatementA2-A2Ans--SaleA2ofA2property,A2plantA2andA2equipment

IfA2aA2companyA2hasA2netA2assetsA2equalA2toA2$3.25A2millionA2butA2isA2soldA2forA2$5.35A2m
illion,A2howA2muchA2goodwillA2doesA2theA2acquirerA2recordA2onA2theirA2balanceA2sheet?A2-
A2Ans--$2.1A2million


IntangibleA2assetsA2-A2Ans--
ItemsA2ofA2value,A2whichA2haveA2noA2physicalA2substance,A2thatA2areA2usedA2toA2generate
A2revenues


AuthorizedA2sharesA2-A2Ans--TheA2totalA2numberA2ofA2sharesA2aA2companyA2canA2sell

ContingenciesA2-A2Ans--
EventsA2thatA2mayA2orA2mayA2notA2happen,A2dependingA2onA2certainA2circumstances

CommitmentsA2-A2Ans--FutureA2obligationsA2thatA2aA2companyA2hasA2agreedA2to

IfA2aA2companyA2issuesA260,000A2sharesA2atA2$0.25A2eachA2butA2theA2sharesA2haveA2aA2p
arA2valueA2ofA2$0.20A2each,A2whatA2isA2theA2resultingA2contributedA2surplus?A2-A2Ans--
$3,000

WhatA2lineA2itemA2isA2notA2foundA2inA2theA2statementA2ofA2shareholders'A2equity?A2-A2Ans--
DebtA2issuedA2orA2repurchased

, WhatA2isA2notA2trueA2aboutA2aA2partnership?A2-A2Ans--
PartnersA2cannotA2beA2heldA2liableA2forA2aA2debt

WhichA2lineA2itemA2usuallyA2accountsA2forA2directA2labor?A2-A2Ans--CostA2ofA2goodsA2sold

SelectA2theA2statementsA2belowA2whichA2areA2true.A2SelectA2allA2thatA2apply.A2-A2Ans--
DepreciationA2andA2amortizationA2areA2non-
cashA2expenses;A2AA2companyA2canA2beA2profitableA2butA2experienceA2negativeA2cashA2fl
ows

WhatA2areA2theA24A2typesA2ofA2auditA2opinions?A2-A2Ans--
Adverse,A2unqualified,A2qualified,A2andA2disclaimerA2ofA2opinion

WhichA2ofA2theA2followingA2statementsA2regardingA2aA2reviewA2engagementA2isA2false?A2-
A2Ans--
AA2reviewA2engagementA2isA2usedA2forA2financialA2statementsA2preparedA2forA2internalA2u
se

SelectA2theA2followingA2keyA2lendingA2ratiosA2usedA2toA2evaluateA2theA2financialA2capacity
A2ofA2aA2businessA2(selectA2allA2thatA2apply).A2-A2Ans--
DebtA2toA2equityA2ratio;A2WorkingA2capitalA2ratio

WhichA2ofA2theA2followingA2toolsA2isA2NOTA2usedA2toA2analyzeA2aA2company?A2-A2Ans--
Porter'sA2fiveA2forces

WhichA2ofA2theA2followingA2toolsA2areA2usedA2toA2analyzeA2aA2company?A2-A2Ans--
FirmA2lifecycle,A2Ansoff'sA2matrix,A2SWOTA2analysis

InA2assessingA2theA2PESTELA2factors,A2consumerA2disposableA2incomeA2isA2anA2example
A2of:A2-A2Ans--EconomicA2factors


ReadA2theA2followingA2passageA2andA2determineA2whichA2ofA2theA2PESTELA2factorsA2theA
2describedA2businessA2isA2facing:
FreshA2andA2Co.A2isA2aA2localA2groceryA2storeA2operatingA2inA2aA2smallA2townA2inA2SeattleA
2sinceA22010.A2TheA2storeA2sellsA2freshA2vegetables,A2fruits,A2meat,A2dairy,A2andA2otherA2p
ackagedA2products.A2InA2recentA2years,A2peopleA2inA2theA2neighborhoodA2haveA2shownA2i
ncreasingA2demandA2forA2organicA2farmA2products.A2InA2response,A2manyA2otherA2grocery
A2storesA2andA2supermarketsA2haveA2startedA2sellingA2organicA2vegetablesA2andA2fruitsA2g
rownA2byA2localA2USA2farmers.A2-A2Ans--SocialA2factors

ReadA2theA2followingA2passageA2andA2determineA2whichA2ofA2theA2PESTELA2factorsA2theA
2describedA2businessA2isA2facing:
MountainA2TransportationA2isA2aA2truckingA2companyA2thatA2providesA2in-
doorA2deliveriesA2ofA2electronicA2productsA2purchasedA2throughA2largeA2consumerA2electr
onicsA2retailersA2inA2theA2US.A2Shawn,A2aA2truckA2driverA2atA2MountainA2Transportation,A2
hasA2filedA2aA2lawsuitA2withA2theA2companyA2regardingA2aA2violationA2ofA2theA2HoursA2ofA2