CFI CBCA CORE COURSE
ASSESSMENT QUESTIONS AND
CORRECT ANSWERS 2026 LATEST
UPDATE GUARANTEED SUCCESS
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? - ANSWER- PEST 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 million
, Intangible 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
What line item is not found in the statement of shareholders' equity? -
ANSWER- Debt issued or repurchased
What is not true about a partnership? - ANSWER- Partners cannot be
held liable for a debt
Which line item usually accounts for direct labor? - ANSWER- Cost of
goods sold
ASSESSMENT QUESTIONS AND
CORRECT ANSWERS 2026 LATEST
UPDATE GUARANTEED SUCCESS
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? - ANSWER- PEST 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 million
, Intangible 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
What line item is not found in the statement of shareholders' equity? -
ANSWER- Debt issued or repurchased
What is not true about a partnership? - ANSWER- Partners cannot be
held liable for a debt
Which line item usually accounts for direct labor? - ANSWER- Cost of
goods sold
