CFI CBCA FINAL EXAM 2025/2026 WITH
ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS AND
SOLUTIONS |ALREADY GRADED
A+|GUARANTEED PASS|LATEST UPDATE
Company A sells bottled soft drinks in Australia. Which of the following answers best describes a
threat to company A according to a SWOT analysis?
Customers are purchasing more gym memberships and are becoming more focused on their
health
Company B is a technology company which primarily sells products to middle-class individuals.
If the average middle-class income falls, which PESTEL factor would be affected?
Economic
When a company is developing their outlook through conducting a market analysis, which areas
should they consider? Select all that apply.
Population growth expectations in the region, Spending plans of the relevant government,
Favorable or unfavorable legislation, Unemployment rates
Which of the following three statements are true? Select the best answer.
I.There is a tendency to focus on financial issues rather than management issues
II.Management ability is a key driver of business results
III.Businesses often fail as a result of management weaknesses
All statements are true
Which is not an example of a strategy scorecard measure?
Sales growth
Which is not a questioning skill used to gather more information?
1|Page
,Using straightforward yes/no questions
Which type of attitude is specific to management looking into a strategy if the firm's largest
customers stopped purchasing from the firm tomorrow?
Attitude to business risk
According to the study conducted on internal barriers to growth, which was the least important
factor out of this list?
Lack of successful innovation
If a company has an aim to grow and plans to exit by sale of the business or flotation, what type
of ownership style is this?
Business-oriented
What level of strategy would focus on market positioning strategies to gain a competitive
advantage?
Business-level
Which of the following is an example of a strategy?
Create a promotional offer to increase the sale of food products
Which components should be analyzed when assessing the track record of a company? Select
all that apply.
Previous statements, Budget vs. actual, Historic promotional success
What is the difference between budget and actual performance called?
Budget variance
Which of the following activities impacts the long-term cash flow?
Purchase PP&E
Which of the following strategies is most likely to shorten the working capital funding gap?
Extend payments to suppliers
Calculate accounts receivable days based on the information below:
Revenues: 2,500,000
Costs of goods sold: 1,600,000
Days in period: 365
Receivables: 300,000
2|Page
,Inventories: 150,000
Payables: 200,000
43.8 = (AR/Revenue)*Number of days in year
What's the company's working capital funding gap in days based on the information below?
Receivable days: 47.2
Inventory days: 34.5
Payable days: 45.6
Days in the period: 365
36.1 days = inventory days + receivable days - payable days
Based on the information below, how much does the company need to finance the working
capital funding gap and how much is the lender willing to provide?
Funding gap (days) 35
Days in period 365
Revenues 2,500,000
Cost of goods sold 1,600,000
Receivables balance 300,000 Up to 50%
Inventories balance 150,000 Up to 50%
Financing Required = 153,425 = Cost of goods sold * Funding gap (days) / Days in period
Financing Allowed = 225,000 = Receivables + Inventories
The cash conversion cycle measures:
The number of days it takes for a company to turn its resource inputs into cash
Calculate the ROI based on the cash flows of each year:
2020 Cash Flows -$2,000
2021 Cash Flows $100
2022 Cash Flows $300
2023 Cash Flows $500
2024 Cash Flows $700
2025 Cash Flows $900
ROI = 25% = 2025 Cum. Cash Flows / Minimum Cum. Cash Flows
3|Page
, Calculate the net cash provided by the operating activities based on the information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
80,000 = Net Income + Depreciation - Increase in accounts receivable - Increase in inventory +
Increase in accounts payable
Calculate the total capital expenditure of 2018 based on the information below:
2017 PP&E: 43,000
2018 PP&E: 65,000
2017 Depreciation: 10,000
2018 Depreciation: 12,000
= 34,000 = 2018 PP&E - 2017 PP&E + 2018 Depreciation
Calculate the company's free cash flow for the current year based on the information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
Capital expenditures: 45,000
Increase in long-term debt: 15,000
Cash from Operations = Net income + Depreciation - Increase in accounts receivable - Increase
in inventory + Increase in accounts payable = 80,000
Free cash flow = Cash from Operations - Capital Expenditures
Free cash flow = 35,000
What is the starting point when conducting a financial analysis of the performance of a
company?
Review of company financial statements
With an end goal in mind, what is the purpose for a credit analyst or commercial banking
professional completing a financial analysis?
To understand a company's overall financial health and credit risk.
4|Page
ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS AND
SOLUTIONS |ALREADY GRADED
A+|GUARANTEED PASS|LATEST UPDATE
Company A sells bottled soft drinks in Australia. Which of the following answers best describes a
threat to company A according to a SWOT analysis?
Customers are purchasing more gym memberships and are becoming more focused on their
health
Company B is a technology company which primarily sells products to middle-class individuals.
If the average middle-class income falls, which PESTEL factor would be affected?
Economic
When a company is developing their outlook through conducting a market analysis, which areas
should they consider? Select all that apply.
Population growth expectations in the region, Spending plans of the relevant government,
Favorable or unfavorable legislation, Unemployment rates
Which of the following three statements are true? Select the best answer.
I.There is a tendency to focus on financial issues rather than management issues
II.Management ability is a key driver of business results
III.Businesses often fail as a result of management weaknesses
All statements are true
Which is not an example of a strategy scorecard measure?
Sales growth
Which is not a questioning skill used to gather more information?
1|Page
,Using straightforward yes/no questions
Which type of attitude is specific to management looking into a strategy if the firm's largest
customers stopped purchasing from the firm tomorrow?
Attitude to business risk
According to the study conducted on internal barriers to growth, which was the least important
factor out of this list?
Lack of successful innovation
If a company has an aim to grow and plans to exit by sale of the business or flotation, what type
of ownership style is this?
Business-oriented
What level of strategy would focus on market positioning strategies to gain a competitive
advantage?
Business-level
Which of the following is an example of a strategy?
Create a promotional offer to increase the sale of food products
Which components should be analyzed when assessing the track record of a company? Select
all that apply.
Previous statements, Budget vs. actual, Historic promotional success
What is the difference between budget and actual performance called?
Budget variance
Which of the following activities impacts the long-term cash flow?
Purchase PP&E
Which of the following strategies is most likely to shorten the working capital funding gap?
Extend payments to suppliers
Calculate accounts receivable days based on the information below:
Revenues: 2,500,000
Costs of goods sold: 1,600,000
Days in period: 365
Receivables: 300,000
2|Page
,Inventories: 150,000
Payables: 200,000
43.8 = (AR/Revenue)*Number of days in year
What's the company's working capital funding gap in days based on the information below?
Receivable days: 47.2
Inventory days: 34.5
Payable days: 45.6
Days in the period: 365
36.1 days = inventory days + receivable days - payable days
Based on the information below, how much does the company need to finance the working
capital funding gap and how much is the lender willing to provide?
Funding gap (days) 35
Days in period 365
Revenues 2,500,000
Cost of goods sold 1,600,000
Receivables balance 300,000 Up to 50%
Inventories balance 150,000 Up to 50%
Financing Required = 153,425 = Cost of goods sold * Funding gap (days) / Days in period
Financing Allowed = 225,000 = Receivables + Inventories
The cash conversion cycle measures:
The number of days it takes for a company to turn its resource inputs into cash
Calculate the ROI based on the cash flows of each year:
2020 Cash Flows -$2,000
2021 Cash Flows $100
2022 Cash Flows $300
2023 Cash Flows $500
2024 Cash Flows $700
2025 Cash Flows $900
ROI = 25% = 2025 Cum. Cash Flows / Minimum Cum. Cash Flows
3|Page
, Calculate the net cash provided by the operating activities based on the information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
80,000 = Net Income + Depreciation - Increase in accounts receivable - Increase in inventory +
Increase in accounts payable
Calculate the total capital expenditure of 2018 based on the information below:
2017 PP&E: 43,000
2018 PP&E: 65,000
2017 Depreciation: 10,000
2018 Depreciation: 12,000
= 34,000 = 2018 PP&E - 2017 PP&E + 2018 Depreciation
Calculate the company's free cash flow for the current year based on the information below:
Net income: 60,000
Depreciation: 25,000
Increase in accounts receivable: 12,000
Increase in inventory: 8,000
Increase in accounts payable: 15,000
Capital expenditures: 45,000
Increase in long-term debt: 15,000
Cash from Operations = Net income + Depreciation - Increase in accounts receivable - Increase
in inventory + Increase in accounts payable = 80,000
Free cash flow = Cash from Operations - Capital Expenditures
Free cash flow = 35,000
What is the starting point when conducting a financial analysis of the performance of a
company?
Review of company financial statements
With an end goal in mind, what is the purpose for a credit analyst or commercial banking
professional completing a financial analysis?
To understand a company's overall financial health and credit risk.
4|Page
