CFI CBCA Core Course Exam Questions with Complete Solutions | Verified | Updated 2026

CFI CBCA Core Course Exam Questions with Complete Solutions | Verified | Updated 2026 What is the main goal of using business writing fundamentals? - answer-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? - answer-The net profit margin ratio is high. Which of the following statements describes a "Condition" strength or weakness for a company in the 5 Cs of credit framework? - answer-The risks associated with the industry are high. Which of the following scenarios would NOT be considered a strength when assessing the management team as part of evaluating a company's character? - answer-Financial reports are not widely shared and performance measures have not been identified. Which of the following ratios most likely indicates strong "Capacity" for a company? - answer-High asset turnover ratio Select the correct formula to calculate the operating margin ratio. - answer-Operating Margin Ratio = EBIT / Revenue Select the correct formula to calculate the inventory turnover ratio. - answer-Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory Which of the following most likely indicates strong "Capital" for a company? - answer-Unutilized lines of credit or loans Which of the following statements on collateral is NOT correct? - answer-Collateral can be used as the main determinant of a credit decision.Which of the following tools or methods is used to assess the general business environment? - answerPEST analysis Select the loan contract with the lowest risk. - answer-A demand loan with monthly payments secured by assets Which is not one of the three main financial statements? - answer-Statement of equity What does the balance sheet indicate? - answer-The financial strength of the business Financing activities - answer-Issuing shares and bonds Operating activities - answer-Payments to suppliers; Depreciation and amortization expense Investing activities - answer-Buying and selling equipment Which is not a section in the financial statement note disclosures? - answer-Management discussion and analysis Balance Sheet - answer-Retained earnings; Share captial Income Statement - answer-Rent expense Cash Flow Statement - answer-Sale of property, plant and equipment 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? - answer-$2.1 millionIntangible assets - answer-Items of value, which have no physical substance, that are used to generate revenues Authorized shares - answer-The total number of shares a company can sell Contingencies - answer-Events that may or may not happen, depending on certain circumstances Commitments - answer-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? - answer-$3,000