CCP Cheat Sheet 2026

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

1. Accounts receivable factoring transfers credit risk to the factor in which arrangement? → Non-recourse factoring
2. What is the primary ethical obligation of a CCP professional when a conflict of interest arises during ratio analysis & cash flow activities? → Disclose the conflict to all relevant parties and recuse from the decision if necessary
3. Which internal control best prevents unauthorized credit limit increases that expose a company to unacceptable risk? → Requiring dual authorization (credit manager + CFO) for limits above a defined threshold
4. What role does management play in credit policy? → Management sets the policy and ensures its alignment with company goals.
5. What is the importance of credit policy compliance? → It ensures all credit decisions are fair and within regulatory standards.
6. A credit professional is asked to approve terms for a customer whose financial statements show negative tangible net worth. This means: → Intangible assets and goodwill exceed equity, leaving no hard asset cushion for creditors
7. A 'cramdown' in Chapter 11 proceedings allows the court to: → Confirm a reorganization plan over the objection of a dissenting class of creditors
8. Which quality assurance method is most commonly applied in ratio analysis & cash flow to verify that CCP professional standards are being met? → Structured audits, peer reviews, and performance metrics aligned with industry benchmarks
9. A credit professional calculates a buyer's interest coverage ratio at 1.2×. What does this indicate? → The buyer has very thin coverage, with operating income barely exceeding interest charges
10. What is the primary ethical obligation of a CCP professional when a conflict of interest arises during trade credit terms & dso activities? → Disclose the conflict to all relevant parties and recuse from the decision if necessary
11. Chapter 13 bankruptcy is primarily designed for: → Individuals with regular income who want to repay debts through a 3-to-5-year plan
12. When a company files for Chapter 11, what happens to executory contracts and unexpired leases? → The debtor in possession may assume or reject them, subject to court approval
13. What should a credit policy include? → Criteria for creditworthiness, terms, and overdue account management.
14. The debt-to-EBITDA ratio is commonly used in credit analysis because it measures: → How many years of operating earnings would be needed to repay total debt
15. What is the primary purpose of credit analysis? → To assess the risk associated with lending to the borrower.
16. A credit professional is reviewing a manufacturer's financials and notices inventory has grown 40% while sales grew only 5%. What risk does this signal? → Potential obsolescence, overproduction, or declining demand that may impair asset quality
17. Which quality assurance method is most commonly applied in crm & ar automation to verify that CCP professional standards are being met? → Structured audits, peer reviews, and performance metrics aligned with industry benchmarks
18. A credit professional notes that a buyer's goodwill increased significantly year-over-year without a disclosed acquisition. This MOST likely indicates: → A possible accounting irregularity that warrants further investigation
19. What does 'concentration risk' mean in the context of a credit portfolio? → Excessive exposure to a single buyer, industry, or geography
20. How should overdue accounts be managed according to a credit policy? → With reminders, late fees, and collections procedures.
21. Which of the following debts is generally NON-DISCHARGEABLE in an individual Chapter 7 bankruptcy? → Student loans absent undue hardship
22. Which term describes the percentage of the invoice value NOT covered by a trade credit insurance policy? → Co-insurance percentage
23. Which quality assurance method is most commonly applied in trade credit terms & dso to verify that CCP professional standards are being met? → Structured audits, peer reviews, and performance metrics aligned with industry benchmarks
24. From a credit management perspective, which early warning signal most strongly indicates a customer may be approaching insolvency? → Sudden increase in the number of disputed invoices combined with deteriorating DSO
25. Which of the following is a fundamental principle of fico & d&b rating models as it applies to Certified Credit Professional? → Systematic evaluation and adherence to established industry standards
26. A CCP professional encounters an unfamiliar situation while performing ucc & secured transactions duties. What is the most appropriate first action? → Consult relevant standards, guidelines, or a qualified supervisor before proceeding
27. What is the importance of a debt-to-income ratio in credit analysis? → It determines how much debt a borrower can take on based on their income.
28. What is the primary ethical obligation of a CCP professional when a conflict of interest arises during export credit & letters of credit activities? → Disclose the conflict to all relevant parties and recuse from the decision if necessary
29. What does 'discharge' mean in the context of a bankruptcy proceeding? → The debtor is released from personal liability for specific debts
30. Why is maintaining customer relationships important in collections? → It helps maintain trust and increases the chance of debt repayment.