CBA Practice Questions - Certified Bank Auditor Exam - CBA Practice Questions

Question 1

Under U.S. GAAP, when a bank purchases a debt security it intends to hold to maturity, how is it classified and measured on the balance sheet?

Held-to-maturity, measured at amortized cost Trading, measured at fair value through net income Available-for-sale, measured at fair value through other comprehensive income Equity method, measured at proportionate share of net assets

Correct Answer:

Held-to-maturity, measured at amortized cost

Question 2

The Current Expected Credit Loss (CECL) model introduced by ASC 326 requires a bank to recognize an allowance for credit losses based on what?

Losses incurred and identified as probable at the reporting date Expected credit losses over the contractual life of the financial asset Only losses confirmed by charge-offs during the period Fair value declines below amortized cost

Correct Answer:

Expected credit losses over the contractual life of the financial asset

Question 3

On a bank's balance sheet, customer deposits are classified as:

Assets Equity Contra-assets Liabilities

Correct Answer:

Liabilities

Question 4

A bank's net interest income is best defined as:

Total interest earned on assets minus total interest paid on liabilities Total revenue minus total operating expenses Interest income plus fee income Net income after taxes and provisions

Correct Answer:

Total interest earned on assets minus total interest paid on liabilities

Question 5

When a bank charges off an uncollectible loan, the entry typically:

Reduces the allowance for credit losses and reduces gross loans Increases provision expense and increases gross loans Increases net income and reduces the allowance Reduces deposits and increases the allowance

Correct Answer:

Reduces the allowance for credit losses and reduces gross loans

Question 1

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Prepare with the CBA Practice Questions - Certified Bank Auditor Exam practice quiz. This question bank includes 100 questions covering bank, audit, control, loan, and internal. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CBA Practice Questions - Certified Bank Auditor Exam

This practice set contains 100 questions from the matching question bank and focuses on bank, audit, control, loan, and internal. 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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CBA Practice Questions - Certified Bank Auditor Exam

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