Financial Certified Services Auditor (CFSA) CFSA Dumps in PDF

Free Financial CFSA Real Questions (page: 10)


Details: DOMAIN II-AUDITING FINANCIAL SERVICES PRODUCTS

Management of the lending institution sets a reserve for loan losses at a given point based on such factors as mentioned below EXCEPT:

  1. Number and type of loans made
  2. Quality of loans made
  3. Historical loss experience
  4. Loan portfolio

Answer(s): D




Details: DOMAIN II-AUDITING FINANCIAL SERVICES PRODUCTS

If more funds than expected are needed to cover loans losses in a given period, the reserve must be increased and the difference is charged to:

  1. Administration expenses
  2. Prepaid assets
  3. Operating expenses
  4. Loan expenses

Answer(s): C




Details: DOMAIN II-AUDITING FINANCIAL SERVICES PRODUCTS

When a loan becomes delinquent or when collection seems unlikely, banks often suspend:

  1. Accrual of interest
  2. Deferral of interest
  3. Loan losses
  4. Loan prepayments

Answer(s): A




Details: DOMAIN II-AUDITING FINANCIAL SERVICES PRODUCTS

If principal is paid on a loan after it has been placed on non-accrual status, the bank must determine whether it should record the payment as a reduction of:

  1. The loan principal amount
  2. Income interest
  3. Both of these
  4. Any one of these

Answer(s): D




Details: DOMAIN II-AUDITING FINANCIAL SERVICES PRODUCTS

Financial institutions regularly identify uncollectible accounts and charge them off against the reserve of:

  1. Unearned loan revenue
  2. Loan losses
  3. Loan expenses
  4. All of these

Answer(s): B




Details: DOMAIN II-AUDITING FINANCIAL SERVICES PRODUCTS

Watch lists of loans that are in danger of becoming delinquent generally contain information on such as:

  1. Customers name and account information
  2. Loan balance outstanding
  3. Available collateral and its estimated value
  4. All of these

Answer(s): D




Details: DOMAIN II-AUDITING FINANCIAL SERVICES PRODUCTS

Deposit accounts are:

  1. Interest bearing accounts
  2. Non-interest bearing accounts
  3. Tax bearing accounts
  4. Either A or B

Answer(s): D




Details: DOMAIN II-AUDITING FINANCIAL SERVICES PRODUCTS

Some small businesses keep funds in a savings account to gain interest on:

  1. Fixed assets
  2. Liquid assets
  3. Loans
  4. All of these

Answer(s): B



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7/13/2023 2:12:00 AM

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