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Credit Business Associatesm (CBAsm)
Exam Study Outline

NIC Links

Recommended Texts

The following textbooks, all of which are available for purchase through the NACM Bookstore, should be used to prepare for the exam:

  • Principles of Business Credit, by NACM
  • Accounting by Warren, Reeve & Duchac or any college-level financial accounting text
  • Understanding Financial Statements by Lyn Fraser
  • Credit Management: Principles and Practices by Dr. Charles Gahala, CCE (optional, review text)

This guide outlines the chapters covered by the CBA exam. Please be aware that this study outline is intended as a general guide for preparing for the examination. In-depth preparation (study sessions, seminars, self-study courses, etc.) is recommended in conjunction with reviewing the material within this study outline.

CBA Exam Format

The CBA exam typically consists of approximately 125-150 true/false and multiple choice questions of an equal point value. Exam questions are drawn from the recommended texts covering any or all of the suggested topics. The exam may require the preparation of a balance sheet, an income statement, a statement of cash flows, or common size analysis (vertical or horizontal). Candidates have three hours in which to complete the exam and may not use texts or notes, but may use hand-held calculators during the examination. Candidates must earn a score of 70% to pass this examination. NACM reserves the right to change the format of the exam at any time.

If you are in any way uncertain about the references or topics listed, please contact the National Education Department for clarification prior to the exam.

Principles of Business Credit, 8th Edition

  • Chapter 1
    Credit in the Business World
  • Chapter 2
    Credit in the Company
  • Chapter 3
    Organizing the Credit Department
  • Chapter 4
    The Credit and Sales Partnership
  • Chapter 5
    Legal Forms of Business
  • Chapter 6
    Legal Environment of Credit
  • Chapter 7
    The Uniform Commercial Code
  • Chapter 8
    Credit Policy and Procedures
  • Chapter 9
    Credit Applications
  • Chapter 10
    Terms and Conditions of Sale
  • Chapter 11
    Credit Investigations
  • Chapter 12
    Business Credit Fraud
  • Chapter 13
    Making Credit Decisions
  • Chapter 14
    International Trade
  • Chapter 15
    Financing and Business Insurance
  • Chapter 16
    Negotiable Instrument
  • Chapter 17
    Bankruptcy Code Proceedings
  • Chapter 18
    Bankruptcy Alternatives

Accounting, 27th Edition

If you are using another accounting text, compare these topics against those in a different text.
  • Chapter 1
    Introduction to Accounting and Business
  • Chapter 2
    Analyzing Transactions
  • Chapter 3
    The Adjusting Process
  • Chapter 4
    Completing the Accounting Cycle
  • Chapter 5
    Accounting Systems
  • Chapter 6
    Accounting for Merchandising Businesses
  • Chapter 7
    Inventories
  • Chapter 8
    Sarbanes Oxley, Internal Controls, and Cash
  • Chapter 9
    Receivables
  • Chapter 10
    Fixed Assets and Intangible Assets
  • Chapter 11
    Current Liabilities and Payroll
  • Chapter 12
    Accounting for Partnerships and Limited Liability Companies
  • Chapter 13
    Corporations: Organization, Stock Transactions, and Dividends
  • Chapter 14
    Statement of Cash Flows

Understanding Financial Statements

  • Chapter 1
    Financial Statements: An Overview
  • Chapter 2
    The Balance Sheet
  • Chapter 3
    Income Statement and Statement of Stockholders’ Equity
  • Chapter 4
    Statement of Cash Flows
  • Chapter 5
    The Analysis of Financial Statements

Credit Management: Principles & Practices, 4th Edition

  • Part I: An Introduction to Business Credit Management
  • Chapter 1
    The Changing Nature of Credit Management
  • Part II: Credit Policy and the Extension of Credit
  • Chapter 4
    Managing Credit Policy
  • Chapter 5
    Legislation and Regulations Pertinent to Business Credit Decision Making
  • Chapter 6
    Conducting the Credit Investigation
  • Chapter 7
    Business Credit Reporting
  • Part III: Credit, Collection and Analysis
  • Chapter 8
    A Systematic Approach to Effective Collection Activity
  • Chapter 9
    Financial Statement Analysis Part IV: Secured Credit and Bankruptcy
  • Chapter 11
    Secured Credit Arrangements and Letters of Credit
  • Chapter 12
    Bankruptcy and Reorganization
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