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AIWMI CCRA-L2 Exam - Topic 5 Question 119 Discussion

Mr. Gopi, while teaching the CCRA course to students described Altman's Model and stated that following variables do exist for Altman's Model:1. total debt/total assets,2. retained earnings/total assets.3. earnings before interest and taxes/total assets,4. market value equity/book value of total liabilities,5. sales/total assetsExactly how many variables are incorrectly identified?
A) Exactly Four
B) Exactly One
C) Exactly Two
D) Exactly Three

AIWMI CCRA-L2 Exam - Topic 5 Question 119 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 119
Topic #: 5
[All CCRA-L2 Questions]

Mr. Gopi, while teaching the CCRA course to students described Altman's Model and stated that following variables do exist for Altman's Model:

1. total debt/total assets,

2. retained earnings/total assets.

3. earnings before interest and taxes/total assets,

4. market value equity/book value of total liabilities,

5. sales/total assets

Exactly how many variables are incorrectly identified?

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Suggested Answer: A

by Portia at Nov 24, 2025, 04:02 PM

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Donte
2 months ago
I’m leaning towards four being incorrect.
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Annamae
2 months ago
I remember learning about three variables being wrong.
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Art
2 months ago
I thought it was exactly one.
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Lenna
3 months ago
I agree with Shawnda, two seems right.
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Rickie
3 months ago
I feel confused about the variables.
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Shawnda
3 months ago
I think it's exactly two.
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Refugia
3 months ago
I think it's exactly two that are incorrect.
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Frederick
4 months ago
I agree, it's definitely more than one wrong.
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Lorenza
4 months ago
Wait, are you sure about that?
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Gracia
4 months ago
I thought it was just one variable off!
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Rose
4 months ago
There are actually five variables in Altman's Model.
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Ezekiel
4 months ago
Haha, Mr. Gopi must be testing us on our Altman's Model knowledge. I bet he's enjoying this!
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Dorthy
5 months ago
Ah, I see what's going on here. This is a tricky one, but I think I've got it figured out.
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Enola
5 months ago
I feel like I might have seen three of these variables in the model, but I can't confidently say which ones are incorrect.
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Tommy
5 months ago
I practiced a similar question last week, and I think the total debt/total assets ratio is actually part of the model, so maybe it's just one or two that are wrong?
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Elise
5 months ago
I recall that Altman's Z-score has five variables, but I’m not sure if all of these listed are correct.
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Denny
5 months ago
I think there are definitely some variables that are not part of Altman's Model, but I can't remember exactly how many.
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Benedict
5 months ago
This is a good opportunity to apply my knowledge of financial analysis models. I'll methodically go through the variables and compare them to what I know about Altman's Model.
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Lawrence
6 months ago
Ah, I see where the confusion might be. I'll need to carefully review the details of Altman's Model to determine which variables are incorrect.
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Ahmed
6 months ago
The variables seem pretty straightforward, but I'm not sure if I'm missing something.
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Jaime
6 months ago
Okay, let me think this through. The variables listed seem familiar, but I want to double-check to make sure I have the right information.
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Annette
6 months ago
Hmm, I think I remember there being a few more variables in Altman's Model. Let me double-check that.
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Joesph
7 months ago
Hmm, I'm a bit unsure about this one. I know Altman's Model has some financial ratios, but I can't quite remember all the details.
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Lonna
7 months ago
This looks like a straightforward question on Altman's Model. I'm pretty confident I can identify the incorrect variables.
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Nikita
2 months ago
Let's stick with one for now.
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Kanisha
2 months ago
What if it's two?
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Lavonda
2 months ago
I agree, one seems right.
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Kip
6 months ago
I think it's exactly one variable that's incorrect.
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Lenny
7 months ago
I feel like it could be three.
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