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NEW MODIFIED CFI CBCA CORE COURSE
ASSESSMENTS &
QUIZZES NEW MODIFIED EXAM QUESTIONS
WITH VERIFIED SOLUTIONS
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
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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
In assessing the PESTEL factors, consumer disposable income is an example of:
-- ANSWER--Economic factors
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
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,Page 3 of 50
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
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, Page 4 of 50
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
Select the statements below which are true. Select all that apply. -- ANSWER-
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? -- ANSWER--Adverse, unqualified,
qualified, and disclaimer of opinion
Which of the following statements regarding a review engagement is false? --
ANSWER--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). -- ANSWER--Debt to equity ratio; Working
capital ratio
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NEW MODIFIED CFI CBCA CORE COURSE
ASSESSMENTS &
QUIZZES NEW MODIFIED EXAM QUESTIONS
WITH VERIFIED SOLUTIONS
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
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,Page 2 of 50
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
In assessing the PESTEL factors, consumer disposable income is an example of:
-- ANSWER--Economic factors
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
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,Page 3 of 50
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
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, Page 4 of 50
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
Select the statements below which are true. Select all that apply. -- ANSWER-
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? -- ANSWER--Adverse, unqualified,
qualified, and disclaimer of opinion
Which of the following statements regarding a review engagement is false? --
ANSWER--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). -- ANSWER--Debt to equity ratio; Working
capital ratio
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