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 crypto exchange must mark its digital asset inventory to market daily. This accounting treatment is best described as:

    Answer: Fair value accounting through profit or loss

    Digital assets held as inventory are typically measured at fair value through profit or loss, reflecting real-time market prices.

  2. A Buy Now Pay Later (BNPL) provider classifies merchant discount revenue separately from consumer late fees. This practice reflects which reporting principle?

    Answer: Disaggregation of revenue streams under ASC 606

    ASC 606 requires companies to disaggregate revenue into categories that depict how the nature, amount, and timing of revenue differ.

  3. When analyzing a fintech's burn rate, an investor calculates the company has $12M in cash and burns $800K per month. What is the runway?

    Answer: 15 months

    $12M ÷ $800K/month = 15 months of runway before the company exhausts its cash reserves.

  4. In a peer-to-peer lending platform's financial statements, provisions for loan losses are recorded to account for:

    Answer: Estimated credit losses on the current loan portfolio

    Loan loss provisions estimate the expected credit losses on the outstanding portfolio under CECL or similar frameworks.

  5. A digital bank's net interest margin (NIM) declined from 4.2% to 3.6% year-over-year. Which scenario most likely explains this?

    Answer: Funding costs rose faster than the yield on earning assets

    NIM compresses when the cost of liabilities (deposits, borrowings) rises more quickly than the yield earned on loans and investments.

  6. Under IFRS 9, a fintech lender must move a loan from Stage 1 to Stage 2 when:

    Answer: There is a significant increase in credit risk since initial recognition

    IFRS 9 Stage 2 classification is triggered by a significant increase in credit risk, not necessarily a missed payment.

  7. A wealthtech firm reports Assets Under Management (AUM) of $2B with average advisory fee of 0.45%. What is the projected annual fee revenue?

    Answer: $9 million

    $2,000,000,000 × 0.0045 = $9,000,000 in annual advisory fee revenue.