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Certified Financial Services Auditor (CFSA) Questions 266–270 (page: 55)

Updated On: 10-Feb-2026
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Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals will " " These amounts until paid.

  1. Bad debts
  2. Reserve
  3. Income expense
  4. All (Allowance for loans and lease losses)

Answer(s): B



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To the extent that the hedged relationship ceases to be effective, the hedging instrument's gains/losses should be transferred from the reserve and recognized in:

  1. Assets
  2. Receivables
  3. Income
  4. Expense

Answer(s): A



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The process of purchasing all or any part of anew issue of municipal securities form the issuer and offering such securities for sale to investors is called:

  1. Underwriting
  2. Asset revaluation reserve
  3. Hedging
  4. None of These

Answer(s): A



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For refinancing home and mortgage loans for example, the underwriter may request additional documentation such as:

  1. Savings/source of money for down payment
  2. Appraisal
  3. Credit History
  4. Only A&B

Answer(s): D



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Once the underwriter has reviewed all of the file documentation provided, he or she will be issued a written decision .The decision may be one of the following:

  1. Approved
  2. Suspended
  3. Denied
  4. Any one of these

Answer(s): D



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