(2025/2026) CFI CBCA FINAL EXAM
QUESTIONS AND CORRECT ANSWERS |
ALREADY GRADED A+
What is not true about a partnership? Correct Answer
Partners cannot be held liable for a debt
Which line item usually accounts for direct labor? Correct
Answer Cost of goods sold
What are the 4 types of audit opinions? Correct Answer
Adverse, unqualified, qualified, and disclaimer of opinion
Which of the following statements regarding a review
engagement is false? Correct Answer A review
engagement is used for financial statements prepared for
internal use
Select the following key lending ratios used to evaluate the
financial capacity of a business (select all that apply).
Correct Answer Debt to equity ratio; Working capital ratio
Which of the following tools is NOT used to analyze a
company? Correct Answer Porter's five forces
Which of the following tools are used to analyze a
company? Correct Answer Firm lifecycle, Ansoff's matrix,
SWOT analysis
,In assessing the PESTEL factors, consumer disposable
income is an example of: Correct Answer Economic
factors
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. Correct Answer Social factors
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/hours-
service/summary-hours-service-regulations) Correct
Answer Legal factors
When competition within an industry is high, which of the
following is most likely to be true? Correct Answer Buyers
have high bargaining power
Which of the following is most likely true for companies at
the maturity stage of the industry lifecycle? Correct
Answer Sales > Cash Flow > Profit
According to the growth/share matrix, companies at
maturity have: Correct Answer Low market growth and
high market share
At which stage of the firm lifecycle would a company most
likely have high business risk, low financial risk, and
generate neutral net cash flow? Correct Answer Growth
Read the following passage and determine which of the
following strategies the business uses in creating solid
relationship with its customers.
Innovation Co. is an international smartphone
manufacturer which currently holds more than 15% of
global smartphone market share. One of the superior
product features it offers (seamless integration with any
smart devices including televisions, smart home
electronics, and home assistance) is the selling point of
the company's latest smartphone series, creating a huge
competitive advantage over its competitors. This premium
, feature also allows Innovation Co. to charge an above-
average price while maintaining a loyal customer base.
Correct Answer Best product
Which of the following strategies describes a company's
attempt to enter into new markets with its existing
products? Correct Answer Market development
Which of the following strategies describes a company's
attempt to enter into new markets with new products?
Correct Answer Diversification
According to the course, which is the most important
section of the business plan? Correct Answer Executive
Summary
In which section of a business plan can you find the name
of the company's lawyer? Select the best answer. Correct
Answer Company Description
Which SMART component is the following goal missing?
In 2020, Company ABC's Canadian operations generated
$90M of revenue, and in 2021 the Canadian operations
generated $98M of revenue. Their goal is to achieve
$100M of revenue in their Canadian operations in the near
future. Correct Answer Timely
Where would you most likely find information regarding the
hierarchical or flat structure of the organization? Select the
best answer. Correct Answer Management and
Operations
QUESTIONS AND CORRECT ANSWERS |
ALREADY GRADED A+
What is not true about a partnership? Correct Answer
Partners cannot be held liable for a debt
Which line item usually accounts for direct labor? Correct
Answer Cost of goods sold
What are the 4 types of audit opinions? Correct Answer
Adverse, unqualified, qualified, and disclaimer of opinion
Which of the following statements regarding a review
engagement is false? Correct Answer A review
engagement is used for financial statements prepared for
internal use
Select the following key lending ratios used to evaluate the
financial capacity of a business (select all that apply).
Correct Answer Debt to equity ratio; Working capital ratio
Which of the following tools is NOT used to analyze a
company? Correct Answer Porter's five forces
Which of the following tools are used to analyze a
company? Correct Answer Firm lifecycle, Ansoff's matrix,
SWOT analysis
,In assessing the PESTEL factors, consumer disposable
income is an example of: Correct Answer Economic
factors
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. Correct Answer Social factors
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/hours-
service/summary-hours-service-regulations) Correct
Answer Legal factors
When competition within an industry is high, which of the
following is most likely to be true? Correct Answer Buyers
have high bargaining power
Which of the following is most likely true for companies at
the maturity stage of the industry lifecycle? Correct
Answer Sales > Cash Flow > Profit
According to the growth/share matrix, companies at
maturity have: Correct Answer Low market growth and
high market share
At which stage of the firm lifecycle would a company most
likely have high business risk, low financial risk, and
generate neutral net cash flow? Correct Answer Growth
Read the following passage and determine which of the
following strategies the business uses in creating solid
relationship with its customers.
Innovation Co. is an international smartphone
manufacturer which currently holds more than 15% of
global smartphone market share. One of the superior
product features it offers (seamless integration with any
smart devices including televisions, smart home
electronics, and home assistance) is the selling point of
the company's latest smartphone series, creating a huge
competitive advantage over its competitors. This premium
, feature also allows Innovation Co. to charge an above-
average price while maintaining a loyal customer base.
Correct Answer Best product
Which of the following strategies describes a company's
attempt to enter into new markets with its existing
products? Correct Answer Market development
Which of the following strategies describes a company's
attempt to enter into new markets with new products?
Correct Answer Diversification
According to the course, which is the most important
section of the business plan? Correct Answer Executive
Summary
In which section of a business plan can you find the name
of the company's lawyer? Select the best answer. Correct
Answer Company Description
Which SMART component is the following goal missing?
In 2020, Company ABC's Canadian operations generated
$90M of revenue, and in 2021 the Canadian operations
generated $98M of revenue. Their goal is to achieve
$100M of revenue in their Canadian operations in the near
future. Correct Answer Timely
Where would you most likely find information regarding the
hierarchical or flat structure of the organization? Select the
best answer. Correct Answer Management and
Operations
