Practice Test Geeks(CFP) Certified Fintech Practitioner Practice Test
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Financial Analysis & Reporting Flashcards

7 cards from real CFP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Analysis & Reporting flashcards as text

  1. A fintech firm uses API-based open banking data to calculate a borrower's Debt-Service Coverage Ratio (DSCR). Which formula correctly expresses DSCR?

    Answer: Net Operating Income / Annual Debt Service

    DSCR is calculated as Net Operating Income divided by Annual Debt Service, measuring cash flow available to cover debt obligations.

  2. When a neobank reports its Tier 1 Capital Ratio, which component is excluded from Tier 1 capital under Basel III?

    Answer: Subordinated long-term debt

    Subordinated long-term debt qualifies as Tier 2 capital, not Tier 1, under Basel III's capital hierarchy.

  3. A payment processor reports a monthly gross payment volume (GPV) of $500M with a take rate of 2.2%. What is its net revenue before processing costs?

    Answer: $11 million

    $500M × 2.2% = $11 million in net revenue before subtracting interchange and processing costs.

  4. In fintech financial reporting, 'cohort analysis' of customer lifetime value (LTV) is best used to assess which of the following?

    Answer: Long-term profitability of customer groups acquired in the same period

    Cohort LTV analysis groups customers by acquisition period to track long-term revenue and profitability trends over time.

  5. A robo-advisor platform must disclose its expense ratio in client reports. The expense ratio is calculated as:

    Answer: Total fund expenses / Average net assets under management

    The expense ratio equals total fund expenses divided by average net assets, expressed as a percentage.

  6. Under ASC 606, when should a fintech SaaS company recognize revenue for an annual subscription paid upfront?

    Answer: Ratably over the subscription period as performance obligations are satisfied

    ASC 606 requires revenue recognition ratably over the service period because performance obligations are satisfied over time.

  7. Which metric best captures the efficiency of a digital lender's loan origination operations?

    Answer: Cost per Originated Loan (CPOL)

    Cost per Originated Loan (CPOL) directly measures the operational cost efficiency of the loan origination process.