CCM Cheat Sheet 2026

The 30 highest-yield CCM facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which of the following best represents the 'stewardship' responsibility of a credit manager? → Protecting the company's assets by managing receivables risk prudently
2. What is the role of trade references in a credit application? → To provide insight into how the applicant pays other creditors
3. A credit manager is negotiating payment terms with a distressed customer. Which competency is most critical in this scenario? → Negotiation and relationship management
4. What is a 'split rating' in credit analysis? → When a company's domestic credit rating differs from its foreign currency rating
5. A credit department is preparing a cash budget for Q3. Which item should NOT be included in the cash receipts section? → Accrued interest income not yet received
6. What role does a credit score play in risk assessment? → Summarizes credit risk
7. A company's credit policy requires that all credit decisions over $500,000 be approved by a credit committee. This control is an example of: → Authorization and approval controls
8. The 'right of setoff' in credit law allows a creditor who is also a depository institution to: → Apply the debtor's deposit account funds against a matured, mutual debt
9. A credit manager reviews a customer's interest coverage ratio of 1.2. What risk does this present? → Moderate risk; the company barely covers its interest expense
10. Which of the following is NOT one of the three major U.S. consumer credit bureaus? → Dun & Bradstreet
11. Which data visualization type is most effective for identifying outliers in accounts receivable aging data? → Box plot
12. Which of the following best demonstrates strong communication competency in a credit professional? → Presenting a clear credit risk summary to executive leadership
13. Leadership competency in a credit department is BEST demonstrated by: → Setting team goals, developing staff, and fostering a culture of sound credit practices
14. Which factor carries the greatest weight in calculating a FICO credit score? → Payment history
15. Under the Fair Debt Collection Practices Act (FDCPA), which entity is primarily regulated by the statute? → Third-party debt collectors
16. A company's quick ratio is 0.8 while its current ratio is 2.1. What does this significant gap most likely indicate? → The company holds a large amount of inventory relative to current liabilities
17. What is a 'write-off' in collections terminology? → An uncollectible debt
18. In which project management process group are project baselines (scope, schedule, cost) formally established? → Planning
19. What is the primary goal of credit risk evaluation? → To determine default probability
20. A creditor who sold goods on credit discovers the buyer committed fraud in obtaining the credit. Under the UCC, the seller may seek to: → Reclaim the goods if demand is made within a reasonable time, generally 10 days
21. The 'statute of limitations' in collections refers to: → The period within which a creditor must file suit to collect a debt
22. A credit manager uses a customer's free cash flow (FCF) to assess repayment ability. FCF is best defined as: → Operating cash flow minus capital expenditures
23. A 'subordination agreement' in a multi-creditor lending arrangement requires: → A junior creditor to agree that its claims rank below those of a senior creditor
24. A credit hold is BEST used when: → A customer's account is significantly past due
25. A 'dragnet clause' in a security agreement is designed to: → Extend the collateral to cover all present and future debts owed by the debtor
26. Which ratio measures how efficiently a company converts its inventory into sales? → Inventory turnover ratio
27. What does a 'CreditWatch' or 'review for possible downgrade' designation from a rating agency indicate? → The agency is actively monitoring the issuer for a potential near-term rating change
28. In a bankruptcy proceeding under Chapter 7, which creditors are paid LAST? → Equity holders (shareholders)
29. In the Altman Z-Score model, a score above 3.0 places a company in which zone? → The safe zone, indicating low bankruptcy probability
30. A CCM candidate is reviewing a project plan that shows Task B cannot start until Task A is 50% complete. What type of dependency relationship is this? → Start-to-Start (SS) with lag