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
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
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
VERIFIED DETAILED ANSWERS |FREQUENTLY TESTED QUESTIONS AND
SOLUTIONS |ALREADY GRADED A+|GUARANTEED PASS|LATEST UPDATE
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
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
