CFI CBCA Core Course Assessments & Quizzes
Study online at https://quizlet.com/_b83v3n
1. What is the main goal of using business writing funda- To reduce mental effort
mentals?
2. Which of the following statements describes a "Capac- The net profit margin ratio
ity" strength or weakness for a company in the 5 Cs of is high.
credit framework?
3. Which of the following statements describes a "Condi- The risks associated with
tion" strength or weakness for a company in the 5 Cs the industry are high.
of credit framework?
4. Which of the following scenarios would NOT be con- Financial reports are not
sidered a strength when assessing the management widely shared and perfor-
team as part of evaluating a company's character? mance measures have not
been identified.
5. Which of the following ratios most likely indicates High asset turnover ratio
strong "Capacity" for a company?
6. Select the correct formula to calculate the operating Operating Margin Ratio =
margin ratio. EBIT / Revenue
7. Select the correct formula to calculate the inventory Inventory Turnover Ratio =
turnover ratio. Cost of Goods Sold / Aver-
age Inventory
8. Which of the following most likely indicates strong Unutilized lines of credit or
"Capital" for a company? loans
9. Which of the following statements on collateral is NOT Collateral can be used as
correct? the main determinant of a
credit decision.
10. PEST analysis
, CFI CBCA Core Course Assessments & Quizzes
Study online at https://quizlet.com/_b83v3n
Which of the following tools or methods is used to
assess the general business environment?
11. Select the loan contract with the lowest risk. A demand loan with
monthly payments se-
cured by assets
12. Which is not one of the three main financial state- Statement of equity
ments?
13. What does the balance sheet indicate? The financial strength of
the business
14. Financing activities Issuing shares and bonds
15. Operating activities Payments to suppliers;
Depreciation and amorti-
zation expense
16. Investing activities Buying and selling equip-
ment
17. Which is not a section in the financial statement note Management discussion
disclosures? and analysis
18. Balance Sheet Retained earnings; Share
captial
19. Income Statement Rent expense
20. Cash Flow Statement Sale of property, plant and
equipment
21. $2.1 million
, CFI CBCA Core Course Assessments & Quizzes
Study online at https://quizlet.com/_b83v3n
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?
22. Intangible assets Items of value, which
have no physical sub-
stance, that are used to
generate revenues
23. Authorized shares The total number of
shares a company can sell
24. Contingencies Events that may or may
not happen, depending
on certain circumstances
25. Commitments Future obligations that a
company has agreed to
26. If a company issues 60,000 shares at $0.25 each but $3,000
the shares have a par value of $0.20 each, what is the
resulting contributed surplus?
27. What line item is not found in the statement of share- Debt issued or repur-
holders' equity? chased
28. What is not true about a partnership? Partners cannot be held li-
able for a debt
29. Which line item usually accounts for direct labor? Cost of goods sold
30. Select the statements below which are true. Select all Depreciation and amorti-
that apply. zation are non-cash ex-
penses; A company can be
, CFI CBCA Core Course Assessments & Quizzes
Study online at https://quizlet.com/_b83v3n
profitable but experience
negative cash flows
31. What are the 4 types of audit opinions? Adverse, unqualified,
qualified, and disclaimer
of opinion
32. Which of the following statements regarding a review A review engagement is
engagement is false? used for financial state-
ments prepared for inter-
nal use
33. Select the following key lending ratios used to evalu- Debt to equity ratio; Work-
ate the financial capacity of a business (select all that ing capital ratio
apply).
34. Which of the following tools is NOT used to analyze a Porter's five forces
company?
35. Which of the following tools are used to analyze a Firm lifecycle, Ansoff's ma-
company? trix, SWOT analysis
36. In assessing the PESTEL factors, consumer disposable Economic factors
income is an example of:
37. Read the following passage and determine which of Social factors
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 neighbor-
hood have shown increasing demand for organic farm
products. In response, many other grocery stores and
Study online at https://quizlet.com/_b83v3n
1. What is the main goal of using business writing funda- To reduce mental effort
mentals?
2. Which of the following statements describes a "Capac- The net profit margin ratio
ity" strength or weakness for a company in the 5 Cs of is high.
credit framework?
3. Which of the following statements describes a "Condi- The risks associated with
tion" strength or weakness for a company in the 5 Cs the industry are high.
of credit framework?
4. Which of the following scenarios would NOT be con- Financial reports are not
sidered a strength when assessing the management widely shared and perfor-
team as part of evaluating a company's character? mance measures have not
been identified.
5. Which of the following ratios most likely indicates High asset turnover ratio
strong "Capacity" for a company?
6. Select the correct formula to calculate the operating Operating Margin Ratio =
margin ratio. EBIT / Revenue
7. Select the correct formula to calculate the inventory Inventory Turnover Ratio =
turnover ratio. Cost of Goods Sold / Aver-
age Inventory
8. Which of the following most likely indicates strong Unutilized lines of credit or
"Capital" for a company? loans
9. Which of the following statements on collateral is NOT Collateral can be used as
correct? the main determinant of a
credit decision.
10. PEST analysis
, CFI CBCA Core Course Assessments & Quizzes
Study online at https://quizlet.com/_b83v3n
Which of the following tools or methods is used to
assess the general business environment?
11. Select the loan contract with the lowest risk. A demand loan with
monthly payments se-
cured by assets
12. Which is not one of the three main financial state- Statement of equity
ments?
13. What does the balance sheet indicate? The financial strength of
the business
14. Financing activities Issuing shares and bonds
15. Operating activities Payments to suppliers;
Depreciation and amorti-
zation expense
16. Investing activities Buying and selling equip-
ment
17. Which is not a section in the financial statement note Management discussion
disclosures? and analysis
18. Balance Sheet Retained earnings; Share
captial
19. Income Statement Rent expense
20. Cash Flow Statement Sale of property, plant and
equipment
21. $2.1 million
, CFI CBCA Core Course Assessments & Quizzes
Study online at https://quizlet.com/_b83v3n
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?
22. Intangible assets Items of value, which
have no physical sub-
stance, that are used to
generate revenues
23. Authorized shares The total number of
shares a company can sell
24. Contingencies Events that may or may
not happen, depending
on certain circumstances
25. Commitments Future obligations that a
company has agreed to
26. If a company issues 60,000 shares at $0.25 each but $3,000
the shares have a par value of $0.20 each, what is the
resulting contributed surplus?
27. What line item is not found in the statement of share- Debt issued or repur-
holders' equity? chased
28. What is not true about a partnership? Partners cannot be held li-
able for a debt
29. Which line item usually accounts for direct labor? Cost of goods sold
30. Select the statements below which are true. Select all Depreciation and amorti-
that apply. zation are non-cash ex-
penses; A company can be
, CFI CBCA Core Course Assessments & Quizzes
Study online at https://quizlet.com/_b83v3n
profitable but experience
negative cash flows
31. What are the 4 types of audit opinions? Adverse, unqualified,
qualified, and disclaimer
of opinion
32. Which of the following statements regarding a review A review engagement is
engagement is false? used for financial state-
ments prepared for inter-
nal use
33. Select the following key lending ratios used to evalu- Debt to equity ratio; Work-
ate the financial capacity of a business (select all that ing capital ratio
apply).
34. Which of the following tools is NOT used to analyze a Porter's five forces
company?
35. Which of the following tools are used to analyze a Firm lifecycle, Ansoff's ma-
company? trix, SWOT analysis
36. In assessing the PESTEL factors, consumer disposable Economic factors
income is an example of:
37. Read the following passage and determine which of Social factors
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 neighbor-
hood have shown increasing demand for organic farm
products. In response, many other grocery stores and
