Preview Questions Credit Analyst | Role Specific Skill

Question 1: What does a persistent negative cash flow from operations indicate in the long run?

Which action should you take?

Choose only one option

Inefficient cost management

High investment activity

Poor revenue generation

Seasonal working capital adjustments

Question 2: How can deferred revenue be interpreted in financial statement analysis?

Which action should you take?

Choose only one option

A liability

Revenue reserve

Tax obligation

An asset

Question 3: Which technology is most effective for predictive debt collection strategies?

Which action should you take?

Choose only one option

Blockchain

OCR (Optical Character Recognition)

RPA (Robotic Process Automation)

Machine learning algorithms

Question 4: In a vertical analysis of the income statement, what is usually considered the base figure?

Which action should you take?

Choose only one option

Total Revenue

Net Income

Total Operating Expense

Gross Profit

Question 5: What is the role of "back-testing" in the validation of credit scoring models?

Which action should you take?

Choose only one option

To evaluate the model's performance on out-of-sample data

To optimize the model's hyperparameters

To implement the model in a live environment

To train the model on historical data

Question 6: When analyzing a secured loan, why would a credit analyst focus on the value and liquidity of the collateral?

Which action should you take?

Choose only one option

To increase the value of the loan above the borrower's creditworthiness

To gauge the potential for capital gains from the collateral asset

To assess the legal complexities associated with the collateral

To ensure that the collateral can be sold or liquidated to repay the loan if the borrower defaults