• What does base case generating projections enable a credit analyst to do?

a. Accurately predict marketplace behavior. b. Determine how much critical variables can fluctuate before liquidity or solvency results become unacceptable. c. Shorten the credit risk assessment process without compromising its integrity. d. Ensure that credit decisions are sound.

• Question (2)

In a UCA cash flow statement, what is the calculation for "change in cash"?

a. Net Income - Total External Financing. b. Net Income + Total External Financing. c. Financing Surplus (Requirement) + Total External Financing. d. Financing Surplus (Requirement) - Total External Financing.

• Question (3)

Which cash flow statement format is used commonly among small business and commercial lenders?

a. Indirect. b. Direct. c. There is no most commonly used format. d. UCA

• Question (4)

Identify the incorrect statement.

a. The cash flow required to support Inventory increases on a relative basis if inventory turnover slows. b. The less quickly inventory is sold, the more cash flow is needed to support inventory. c. The cash flow required to support inventory decreases on a relative basis if inventory turnover slows. d. The cash flow required to support Inventory decreases on a relative basis if inventory turnover accelerates.