CFI CBCA Core Course Assessments & Quizzes with well answered questions

CFI CBCA Core Course Assessments &
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Quizzes with well answered questions |\ |\ |\ |\




What is the main goal of using business writing fundamentals? -
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CORRECT ANSWERS ✔✔To reduce mental effort
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Which of the following statements describes a "Capacity"
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strength or weakness for a company in the 5 Cs of credit
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framework? - CORRECT ANSWERS ✔✔The net profit margin ratio
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is high.
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Which of the following statements describes a "Condition"
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strength or weakness for a company in the 5 Cs of credit
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framework? - CORRECT ANSWERS ✔✔The risks associated with
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the industry are high.
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Which of the following scenarios would NOT be considered a
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strength when assessing the management team as part of
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evaluating a company's character? - CORRECT ANSWERS
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✔✔Financial reports are not widely shared and performance|\ |\ |\ |\ |\ |\ |\ |\


measures have not been identified. |\ |\ |\ |\




Which of the following ratios most likely indicates strong
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"Capacity" for a company? - CORRECT ANSWERS ✔✔High asset
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turnover ratio |\

,Select the correct formula to calculate the operating margin ratio.
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- CORRECT ANSWERS ✔✔Operating Margin Ratio = EBIT /
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Revenue


Select the correct formula to calculate the inventory turnover
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ratio. - CORRECT ANSWERS ✔✔Inventory Turnover Ratio = Cost of
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Goods Sold / Average Inventory
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Which of the following most likely indicates strong "Capital" for a
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company? - CORRECT ANSWERS ✔✔Unutilized lines of credit or
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loans


Which of the following statements on collateral is NOT correct? -
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CORRECT ANSWERS ✔✔Collateral can be used as the main
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determinant of a credit decision. |\ |\ |\ |\




Which of the following tools or methods is used to assess the
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general business environment? - CORRECT ANSWERS ✔✔PEST
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analysis


Select the loan contract with the lowest risk. - CORRECT
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ANSWERS ✔✔A demand loan with monthly payments secured by
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assets


Which is not one of the three main financial statements? -
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CORRECT ANSWERS ✔✔Statement of equity
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,What does the balance sheet indicate? - CORRECT ANSWERS
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✔✔The financial strength of the business
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Financing activities - CORRECT ANSWERS ✔✔Issuing shares and
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bonds


Operating activities - CORRECT ANSWERS ✔✔Payments to |\ |\ |\ |\ |\ |\ |\


suppliers; Depreciation and amortization expense |\ |\ |\ |\




Investing activities - CORRECT ANSWERS ✔✔Buying and selling
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equipment


Which is not a section in the financial statement note
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disclosures? - CORRECT ANSWERS ✔✔Management discussion |\ |\ |\ |\ |\ |\


and analysis |\




Balance Sheet - CORRECT ANSWERS ✔✔Retained earnings; Share
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captial
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Income Statement - CORRECT ANSWERS ✔✔Rent expense
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Cash Flow Statement - CORRECT ANSWERS ✔✔Sale of property,
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plant and equipment |\ |\




If a company has net assets equal to $3.25 million but is sold for
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$5.35 million, how much goodwill does the acquirer record on
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their balance sheet? - CORRECT ANSWERS ✔✔$2.1 million
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, Intangible assets - CORRECT ANSWERS ✔✔Items of value, which
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have no physical substance, that are used to generate revenues
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Authorized shares - CORRECT ANSWERS ✔✔The total number of
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shares a company can sell
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Contingencies - CORRECT ANSWERS ✔✔Events that may or may |\ |\ |\ |\ |\ |\ |\ |\ |\


not happen, depending on certain circumstances
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Commitments - CORRECT ANSWERS ✔✔Future obligations that a |\ |\ |\ |\ |\ |\ |\ |\


company has agreed to |\ |\ |\




If a company issues 60,000 shares at $0.25 each but the shares
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have a par value of $0.20 each, what is the resulting contributed
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surplus? - CORRECT ANSWERS ✔✔$3,000
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What line item is not found in the statement of shareholders'
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equity? - CORRECT ANSWERS ✔✔Debt issued or repurchased
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What is not true about a partnership? - CORRECT ANSWERS
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✔✔Partners cannot be held liable for a debt |\ |\ |\ |\ |\ |\ |\




Which line item usually accounts for direct labor? - CORRECT
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ANSWERS ✔✔Cost of goods sold |\ |\ |\ |\