CFI CBCA Account Monitoring and Warning Signs Exams 2026 Questions and Answers

CFI CBCA Account Monitoring and
Warning Signs Exams 2026 Questions
and Answers

Developing an Action Plan

Consider the following when developing an action plan to address the root

problem: - Answer -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?

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,Account Monitoring and Warning Signs

Identify Early Warning Signs

Course Objectives - Answer --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 - Answer --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: -

Answer -1. Financial Statement Review

• Comparative analysis

• Working capital analysis

• Cash flow analysis



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, • 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


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