CFI CBCA Final Exam: Ultimate Study Guide & Practice Questions

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CFI CBCA FINAL EXAM STUDY GUIDE 2025/2026

COMPLETE QUESTIONS AND CORRECT DETAILED

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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.

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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

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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

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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