Cumulative level test: Reading the record and producing the artifacts: disclosure items, contract clauses, public filings, tax-basis statements and the auditable deal packet

Check understanding, separately from reading

12 questions · 80% to pass · no timer. This longer test revisits both units in the level. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

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Question 1

A merchant in one state is offered a fixed-payment advance with a reconciliation clause. Write the two reads the packet needs: the disclosure audit and the clause read, naming what each produces for the other.The disclosure audit produces the item rows for the governing list, with the conditional prepayment row left open and the estimated-payments row scored, while the clause read produces the reconciliation clause's effect on the tail, so the audit's estimated number of payments and the clause's range describe the same uncertainty from two directions.The audit confirms the document is complete, and the clause read confirms the term, so the packet can state the completion date as a single number once the two have been checked.

Question 2

A search shows an all-assets filing from seven years ago with no continuation, and the tax return shows $96,400 of net profit against deposits of $468,000 with a cash method declared. Write the two findings and the one thing the packet must not conclude.The filing is void and the business is unencumbered, so the packet can treat the position as first and the free-cash figure as capacity for a new remittance.The filing's five-year effectiveness expired and, absent a continuation filed within the six months before that date, the security interest lapsed and is deemed never perfected as against a purchaser for value, while the return reconciles exactly at $412,000 of receipts plus $40,000 plus $9,500 plus $6,500 to $468,000 of deposits and rebuilds to $800.00 of free cash; the packet must not conclude either that the business is unencumbered or that the obligation is extinguished, because both are separate questions the documents do not answer.

Question 3

A funder declines the requested amount and offers a smaller sum on a shorter tail at a higher factor, and the merchant asks whether he has been declined. Write the three-part answer.Describe the counteroffer on three axes, amount, duration and cost per dollar of net proceeds, noting for the worked pair that it is 29.41 percent smaller, 16.67 percent shorter and 6.16 percent more expensive per dollar; state the regulatory position, that a refusal in substantially the amount or terms requested is adverse action unless the creditor makes a counteroffer and the applicant uses or expressly accepts the credit offered; and give the merchant the conditions list, including a dated payoff figure for existing obligations, because no funds have moved.Tell the merchant he has been declined, send the adverse action notice with reasons, and restart the search at a higher amount, since the funder reduced the request and the file should record the decline.

Question 4

A comparison sheet reports net proceeds of $57,300 for a $60,000 advance with a 1.35 factor over 26 weeks, and the contract shows a $2,700 origination fee and an $895 administrative fee. Correct the sheet and state why the error mattered.Net proceeds of $57,300 is close enough for a comparison since the $895 is administrative, and the sheet can note the fee in a footnote rather than in the denominator, because the merchant will pay it either way.Net proceeds are $60,000 minus $2,700 minus $895, which is $56,405.00, so total repayment of $81,000.00 is $143.60 per $100 of net proceeds rather than the $141.36 reported; the omitted $895 understated the measure by $2.24 per $100, and the error was visible only because the reviewer could not reproduce the figure from the documents.

Question 5

An evidence calendar shows eleven statement months current, one month stale by 264 days, and one month with no row content. The merchant says the set is complete because every month is accounted for. Correct him and state the consequence.A stale month and a missing month are different facts with different consequences: the stale row shows the business traded and the evidence is outside its window, while the missing row means nothing is known about that period, and the missing row blocks the file while the stale row is context rather than current evidence; the log records each per period with its five fields so the two are never averaged.Both are minor documentation gaps on one of twelve periods, so the set can proceed while the two months are refreshed, since the other eleven months establish the pattern.

Question 6

An outreach draft contains fourteen checkable claims, five of which have no supporting document, an unsubscribe link built yesterday, and a list of 480 addresses. Write the corrections, the tests and the honest volume statement.Keep the fourteen claims but soften the five, since a hedged claim is unlikely to mislead, and rely on the new unsubscribe link because it was tested when it was built.Delete the five unsupported claims, rewrite the ones that can be sourced, leave the nine re-checked claims, test the unsubscribe mechanism again after the thirty-day threshold because it must remain capable of receiving requests for no less than 30 days and requests must be honoured within 10 business days, check the 480 addresses against the suppression list with its date, and state reply rates as observations from a named batch size, such as 10.08 and 7.68 responses per 480 depending on the rate.

Question 7

A vetting file has eleven checks with four verified, three failed and four unresolved, including an unconfirmed registration and a contract template containing a confession of judgment provision. Write the output, the clearance list and the boundary on what the file may say.The output is not yet, because unresolved blocks exactly as a fail blocks, so seven of eleven checks block the file at 63.64 percent; the clearance list names the confirmation of current registration, the disclosure survey of the governing item list, the two references and the signer's authority; and the file may state what was verified and what failed against the documents in hand but may not allege dishonesty or predict the outcome of any transaction.The output is yes with conditions, since four checks cleared, the failures are documentary and a confession of judgment provision is unenforceable in the state where the contract sits.

Question 8

A packet reaches its decision line and names no reversal point. The reviewer's three tests are source, arithmetic and reversal. Write the review and the fix.The decision line is the conclusion and the reversal point is optional, since the merchant wants an answer rather than a list of conditions under which the answer changes.The packet is unfinished, because an item that cannot answer what would reverse it has no falsifier and the review stops there; the fix is to state the reversal in the documents' own units, for example the weekly contribution level at which the remittance share breaches the limit the packet assumed, and to add the matching line to the assumptions log with the observation that would falsify it.

Question 9

A merchant insists on signing today because the seller's quote expires, while the file has one missing statement month, a fee in the offer summary that the contract does not carry, and an unconfirmed registration. Write what the advisor presents and refuses.Present a not-yet with three dated conditions and a clearance list, state the fee discrepancy in both documents' own numbers, and refuse to describe any funder's decision or to sign off on the discrepancy; the seller's deadline is a fact about the seller's quote and not a fact about the file, and the merchant's decision remains the merchant's to make with the conditions written down.Present the file as ready with the three items flagged as administrative, since the merchant accepts the risk, the quote deadline is real, and the fee difference is small.

Question 10

A reviewer objects that the packet's comparison sheet shows the advance at $143.60 per $100 of net proceeds against a term loan at $124.81, and concludes the packet is recommending the advance. Answer the objection.Add a recommendation line naming the loan, since the per-$100 measure is the fairest basis of comparison and the packet should be decisive when the arithmetic is clear.The sheet has no winner column and the two instruments are priced on different bases, so both rows are presented with their denominators, tails and contribution shares, 25.12 percent of monthly contribution for the advance against 2.85 percent for the loan, and the packet states the cost difference of $18.79 per $100 and the tail difference of roughly six months against 48 months without ranking them.

Question 11

Write the four sentences a packet's scope block must carry about its own standards and limits, and explain the counting rule that makes one of them checkable.It states the standard it measures the file against and counts that standard's sentences, five in the lending criteria section as amended by 88 FR 21085, with the fourth permitting Lenders, CDCs and SBA to use a business credit scoring model; it names borrowed supervisory reasoning and states that it binds banks rather than advisors; it states the preparer's compensation; and it states that nothing in the packet is a legal opinion, a credit decision, a promise of funding or a certification of competence.It states that the file meets SBA standards, that the analysis follows published supervisory guidance, and that the merchant's application is strong, with the compensation disclosed on request.

Question 12

Cumulative capstone. A merchant's file contains an offer with a reconciliation clause, a contract whose prepayment clause is silent, a search showing a lapsed all-assets filing, a cash-method return, a calendar missing one month, an outreach record, and a vetting file with two unresolved rows. Write the packet's decision line and its four conditions.The decision line reads yes, since the offer is financeable and most items clear, with the lapsed filing noted as an advantage, the missing month and unresolved rows carried as routine follow-ups, and the prepayment question left to closing.The decision line reads not yet, with the four conditions: a refreshed payoff figure and the missing statement month cleared, with each carrying a date; the silent prepayment clause read to the merchant in its own terms so no unearned saving is implied; the lapsed filing and the two unresolved vetting rows listed as open questions with the documents that would resolve them; and the reversal point stated in the documents' units, such as the weekly contribution level at which the remittance share under the reconciliation clause breaches the limit the packet assumed.

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