CFI CBCA Core Course Exam Questions and
Correct Answers| Latest Update
What is the main goal of using business writing fundamentals?
To reduce mental effort
Which of the following statements describes a "Capacity"
strength or weakness for a company in the 5 Cs of credit
framework?
The net profit margin ratio is high.
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?
$2.1 million
Intangible assets
Items of value, which have no physical substance, that are
used to generate revenues
Authorized shares
,The total number of shares a company can sell
Contingencies
Events that may or may not happen, depending on certain
circumstances
Commitments
Future obligations that a company has agreed to
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?
$3,000
What line item is not found in the statement of shareholders'
equity?
Debt issued or repurchased
What is not true about a partnership?
,Partners cannot be held liable for a debt
Which line item usually accounts for direct labor?
Cost of goods sold
Select the statements below which are true. Select all that
apply.
Depreciation and amortization are non-cash expenses; A
company can be profitable but experience negative cash flows
What are the 4 types of audit opinions?
Adverse, unqualified, qualified, and disclaimer of opinion
Which of the following statements regarding a review
engagement is false?
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).
Debt to equity ratio; Working capital ratio
Which of the following tools is NOT used to analyze a
company?
Porter's five forces
Which of the following tools are used to analyze a company?
Firm lifecycle, Ansoff's matrix, SWOT analysis
In assessing the PESTEL factors, consumer disposable
income is an example of:
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
Correct Answers| Latest Update
What is the main goal of using business writing fundamentals?
To reduce mental effort
Which of the following statements describes a "Capacity"
strength or weakness for a company in the 5 Cs of credit
framework?
The net profit margin ratio is high.
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?
$2.1 million
Intangible assets
Items of value, which have no physical substance, that are
used to generate revenues
Authorized shares
,The total number of shares a company can sell
Contingencies
Events that may or may not happen, depending on certain
circumstances
Commitments
Future obligations that a company has agreed to
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?
$3,000
What line item is not found in the statement of shareholders'
equity?
Debt issued or repurchased
What is not true about a partnership?
,Partners cannot be held liable for a debt
Which line item usually accounts for direct labor?
Cost of goods sold
Select the statements below which are true. Select all that
apply.
Depreciation and amortization are non-cash expenses; A
company can be profitable but experience negative cash flows
What are the 4 types of audit opinions?
Adverse, unqualified, qualified, and disclaimer of opinion
Which of the following statements regarding a review
engagement is false?
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).
Debt to equity ratio; Working capital ratio
Which of the following tools is NOT used to analyze a
company?
Porter's five forces
Which of the following tools are used to analyze a company?
Firm lifecycle, Ansoff's matrix, SWOT analysis
In assessing the PESTEL factors, consumer disposable
income is an example of:
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
