AIWMI CCRA-L2 Exam - Topic 5 Question 119 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 119
Topic #: 5

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?

AExactly Four

BExactly One

CExactly Two

DExactly Three

Show Suggested Answer

Suggested Answer: A

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

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Donte

18 days ago

I’m leaning towards four being incorrect.

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Annamae

23 days ago

I remember learning about three variables being wrong.

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Art

29 days ago

I thought it was exactly one.

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Lenna

1 month ago

I agree with Shawnda, two seems right.

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Rickie

1 month ago

I feel confused about the variables.

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Shawnda

1 month ago

I think it's exactly two.

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Refugia

2 months ago

I think it's exactly two that are incorrect.

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Frederick

2 months ago

I agree, it's definitely more than one wrong.

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Lorenza

2 months ago

Wait, are you sure about that?

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Gracia

3 months ago

I thought it was just one variable off!

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Rose

3 months ago

There are actually five variables in Altman's Model.

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Ezekiel

3 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

3 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

3 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

3 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

4 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

4 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

4 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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