CFI CBCA Core Course Assessments & Quizzes | Questions with
100% Verified Answers | Latest Update 2026/2027
Question: What is the main goal of using business writing fundamentals?
Answer: To reduce mental effort
Question: 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.
Question: 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.
Question: 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.
Question: Which of the following ratios most likely indicates strong "Capacity" for a company?
Answer: High asset turnover ratio
Question: Select the correct formula to calculate the operating margin ratio.
Answer: Operating Margin Ratio = EBIT / Revenue
Question: Select the correct formula to calculate the inventory turnover ratio.
Answer: Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Question: Which of the following most likely indicates strong "Capital" for a company?
Answer: Unutilized lines of credit or loans
Question: Which of the following statements on collateral is NOT correct?
Answer: Collateral can be used as the main determinant of a credit decision.
Question: Which of the following tools or methods is used to assess the general business environment?
Answer: PEST analysis
Question: Select the loan contract with the lowest risk.
Answer: A demand loan with monthly payments secured by assets
Question: Which is not one of the three main financial statements?
Answer: Statement of equity
Question: What does the balance sheet indicate?
Answer: The financial strength of the business
,Question: Financing activities
Answer: Issuing shares and bonds
Question: Operating activities
Answer: Payments to suppliers; Depreciation and amortization expense
Question: Investing activities
Answer: Buying and selling equipment
Question: Which is not a section in the financial statement note disclosures?
Answer: Management discussion and analysis
Question: Balance Sheet
Answer: Retained earnings; Share captial
Question: Income Statement
Answer: Rent expense
Question: Cash Flow Statement
Answer: Sale of property, plant and equipment
Question: 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
Question: Intangible assets
Answer: Items of value, which have no physical substance, that are used to generate revenues
Question: Authorized shares
Answer: The total number of shares a company can sell
Question: Contingencies
Answer: Events that may or may not happen, depending on certain circumstances
Question: Commitments
Answer: Future obligations that a company has agreed to
Question: 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
Question: What line item is not found in the statement of shareholders' equity?
Answer: Debt issued or repurchased
Question: What is not true about a partnership?
Answer: Partners cannot be held liable for a debt
, Question: Which line item usually accounts for direct labor?
Answer: Cost of goods sold
Question: Select the statements below which are true. Select all that apply.
Answer: Depreciation and amortization are non-cash expenses; A company can be profitable but experience
negative cash flows
Question: What are the 4 types of audit opinions?
Answer: Adverse, unqualified, qualified, and disclaimer of opinion
Question: Which of the following statements regarding a review engagement is false?
Answer: A review engagement is used for financial statements prepared for internal use
Question: Select the following key lending ratios used to evaluate the financial capacity of a business (select all
that apply).
Answer: Debt to equity ratio; Working capital ratio
Question: Which of the following tools is NOT used to analyze a company?
Answer: Porter's five forces
Question: Which of the following tools are used to analyze a company?
Answer: Firm lifecycle, Ansoff's matrix, SWOT analysis
Question: In assessing the PESTEL factors, consumer disposable income is an example of:
Answer: Economic factors
Question: Read the following passage and determine which of the PESTEL factors the described business is
facing: Fresh and Co. is a local grocery store operating in a small town in Seattle since 2010. The store sells
fresh vegetables, fruits, meat, dairy, and other packaged products. In recent years, people in the neighborhood
have shown increasing demand for organic farm products. In response, many other grocery stores and
supermarkets have started selling organic vegetables and fruits grown by local US farmers.
Answer: Social factors
Question: Read the following passage and determine which of the PESTEL factors the described business is
facing: Mountain Transportation is a trucking company that provides in-door deliveries of electronic products
purchased through large consumer electronics retailers in the US. Shawn, a truck driver at Mountain
Transportation, has filed a lawsuit with the company regarding a violation of the Hours of Service regulations
for commercial drivers. Shawn claims that he has been forced to work over 70 hours for the past couple weeks,
due to a high volume of customer orders. According to the Hours of Service regulations, all commercial drivers
may not drive after 60 hours on duty in 7 consecutive days and may only restart after taking 34 or more
consecutive hours off duty. (Source:
https://www.fmcsa.dot.gov/regulations/hoursservice/summary-hours-service-regulations)
Answer: Legal factors
Question: When competition within an industry is high, which of the following is most likely to be true?
Answer: Buyers have high bargaining power
100% Verified Answers | Latest Update 2026/2027
Question: What is the main goal of using business writing fundamentals?
Answer: To reduce mental effort
Question: 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.
Question: 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.
Question: 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.
Question: Which of the following ratios most likely indicates strong "Capacity" for a company?
Answer: High asset turnover ratio
Question: Select the correct formula to calculate the operating margin ratio.
Answer: Operating Margin Ratio = EBIT / Revenue
Question: Select the correct formula to calculate the inventory turnover ratio.
Answer: Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Question: Which of the following most likely indicates strong "Capital" for a company?
Answer: Unutilized lines of credit or loans
Question: Which of the following statements on collateral is NOT correct?
Answer: Collateral can be used as the main determinant of a credit decision.
Question: Which of the following tools or methods is used to assess the general business environment?
Answer: PEST analysis
Question: Select the loan contract with the lowest risk.
Answer: A demand loan with monthly payments secured by assets
Question: Which is not one of the three main financial statements?
Answer: Statement of equity
Question: What does the balance sheet indicate?
Answer: The financial strength of the business
,Question: Financing activities
Answer: Issuing shares and bonds
Question: Operating activities
Answer: Payments to suppliers; Depreciation and amortization expense
Question: Investing activities
Answer: Buying and selling equipment
Question: Which is not a section in the financial statement note disclosures?
Answer: Management discussion and analysis
Question: Balance Sheet
Answer: Retained earnings; Share captial
Question: Income Statement
Answer: Rent expense
Question: Cash Flow Statement
Answer: Sale of property, plant and equipment
Question: 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
Question: Intangible assets
Answer: Items of value, which have no physical substance, that are used to generate revenues
Question: Authorized shares
Answer: The total number of shares a company can sell
Question: Contingencies
Answer: Events that may or may not happen, depending on certain circumstances
Question: Commitments
Answer: Future obligations that a company has agreed to
Question: 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
Question: What line item is not found in the statement of shareholders' equity?
Answer: Debt issued or repurchased
Question: What is not true about a partnership?
Answer: Partners cannot be held liable for a debt
, Question: Which line item usually accounts for direct labor?
Answer: Cost of goods sold
Question: Select the statements below which are true. Select all that apply.
Answer: Depreciation and amortization are non-cash expenses; A company can be profitable but experience
negative cash flows
Question: What are the 4 types of audit opinions?
Answer: Adverse, unqualified, qualified, and disclaimer of opinion
Question: Which of the following statements regarding a review engagement is false?
Answer: A review engagement is used for financial statements prepared for internal use
Question: Select the following key lending ratios used to evaluate the financial capacity of a business (select all
that apply).
Answer: Debt to equity ratio; Working capital ratio
Question: Which of the following tools is NOT used to analyze a company?
Answer: Porter's five forces
Question: Which of the following tools are used to analyze a company?
Answer: Firm lifecycle, Ansoff's matrix, SWOT analysis
Question: In assessing the PESTEL factors, consumer disposable income is an example of:
Answer: Economic factors
Question: Read the following passage and determine which of the PESTEL factors the described business is
facing: Fresh and Co. is a local grocery store operating in a small town in Seattle since 2010. The store sells
fresh vegetables, fruits, meat, dairy, and other packaged products. In recent years, people in the neighborhood
have shown increasing demand for organic farm products. In response, many other grocery stores and
supermarkets have started selling organic vegetables and fruits grown by local US farmers.
Answer: Social factors
Question: Read the following passage and determine which of the PESTEL factors the described business is
facing: Mountain Transportation is a trucking company that provides in-door deliveries of electronic products
purchased through large consumer electronics retailers in the US. Shawn, a truck driver at Mountain
Transportation, has filed a lawsuit with the company regarding a violation of the Hours of Service regulations
for commercial drivers. Shawn claims that he has been forced to work over 70 hours for the past couple weeks,
due to a high volume of customer orders. According to the Hours of Service regulations, all commercial drivers
may not drive after 60 hours on duty in 7 consecutive days and may only restart after taking 34 or more
consecutive hours off duty. (Source:
https://www.fmcsa.dot.gov/regulations/hoursservice/summary-hours-service-regulations)
Answer: Legal factors
Question: When competition within an industry is high, which of the following is most likely to be true?
Answer: Buyers have high bargaining power
