CCA Study Guide 2026
Everything you need to pass the CCA exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CCA Exam Format at a Glance
📚 CCA Topics to Study (21)
✍️ Sample CCA Questions & Answers
1. Which financial ratio is most useful in evaluating a borrower’s ability to repay debt?
The Debt Service Coverage Ratio (DSCR) is a crucial metric that measures a company's or individual's available cash flow to cover current debt obligations. It indicates how easily a borrower can pay their principal and interest payments. A higher DSCR suggests a greater ability to service debt, making it a key indicator for lenders assessing repayment risk and overall financial health.
2. Which ratio uses cash flow from operations as the numerator to assess short-term liquidity?
The operating cash flow ratio (Operating CFO / Current Liabilities) measures how well current liabilities can be covered by cash generated from operations.
3. Which of the following best describes a 'pass' loan classification under standard regulatory risk rating systems?
Pass-rated loans represent credits where the borrower demonstrates adequate capacity to repay with no identified weakness, representing the bulk of a healthy portfolio.
4. A company's capital expenditure exceeds its depreciation consistently over several years. From a credit perspective, this most likely signals:
Capex exceeding depreciation indicates net asset investment and growth, which is positive but may reduce free cash flow and increase borrowing needs.
5. Which of the following increases the lender’s risk in a loan structure?
Balloon payments significantly increase the lender's risk because a large, lump-sum payment of the principal is due at the end of the loan term. This creates substantial refinancing risk for the borrower, who might struggle to make this final payment. If the borrower cannot repay or refinance, the lender faces a higher probability of default and potential losses.
6. What quality assurance measure supports assessment and evaluation?
Ongoing quality assurance through self-assessment, peer review, and standards adherence ensures continuous improvement.