NICA CCCA Practice Questions - NICA Certified Chartered Credit Administrator Exam - NICA CCCA Practice Questions - NICA Certified Chartered Credit Administrator Exam

Question 1

What is the primary objective of a corporate credit policy in a Nigerian commercial enterprise?

To maximize sales volume at all costs without regard to cash flow To completely eliminate bad debts by refusing credit to all customers To optimize profitability by balancing sales growth with acceptable credit risk To shift all credit collection activities to third-party debt recovery agencies

Correct Answer:

To optimize profitability by balancing sales growth with acceptable credit risk

Question 2

Which stage of the credit cycle involves gathering information, checking bank references, and conducting credit bureau searches before extending a credit facility?

Credit evaluation and assessment Debt collection and recovery Security documentation and perfection Credit monitoring and supervision

Correct Answer:

Credit evaluation and assessment

Question 3

Which document issued by a credit provider in Nigeria formally conveys the approval of a credit limit, detailing the terms, repayment period, interest rate, and required security?

Credit Application Form Facility Letter / Offer Letter CAC Form 1.1 Board Resolution to Borrow

Correct Answer:

Facility Letter / Offer Letter

Question 4

In corporate credit administration, what does the term 'credit terms' typically specify?

The legal penalties for corporate insolvency under Nigerian CAMA law The list of directors authorized to sign the credit application The period allowed for payment and any discount offered for early settlement The minimum value of movable property to be registered on the National Collateral Registry

Correct Answer:

The period allowed for payment and any discount offered for early settlement

Question 5

If a Nigerian supplier offers credit terms of '3/15, net 45', what is the meaning of these terms?

A 3% discount is granted if payment is made within 15 days; otherwise, the full invoice amount is due within 45 days Interest will accumulate at 3% for the first 15 days, and then rise to 45% if unpaid The customer must pay 3% of the invoice immediately, 15% in a week, and the net amount in 45 days The credit limit is capped at 3 million Naira for 15 days, and net limits apply up to 45 days

Correct Answer:

A 3% discount is granted if payment is made within 15 days; otherwise, the full invoice amount is due within 45 days

Exam overview

About this Exam

Prepare with the NICA CCCA Practice Questions - NICA Certified Chartered Credit Administrator Exam practice quiz. This question bank includes 100 questions covering credit, debt, corporate, primary, and borrower. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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NICA CCCA Practice Questions - NICA Certified Chartered Credit Administrator Exam

This practice set contains 100 questions from the matching question bank and focuses on credit, debt, corporate, primary, and borrower. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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NICA CCCA Practice Questions - NICA Certified Chartered Credit Administrator Exam

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