Credit Institute CCP Sample Questions & Practice Test

Certified Credit Professional (CCP) preparation should test how credit decisions are made before, during, and after a customer relationship: policy, analysis, limits, documentation, collections, disputes, security, and risk monitoring.

CCP exam snapshot

What CCP practice should test

• evaluating customer creditworthiness with financial and non-financial signals
• applying credit policy, limits, terms, security, and approval controls
• choosing collection steps that preserve evidence and customer communication
• recognizing insolvency, dispute, lien, guarantee, and receivables-control risks

Sample Exam Questions

Try these 12 original CCP sample questions. They are not official Credit Institute of Canada questions and do not reproduce a live exam.

Question 1

Topic: Credit policy

A sales manager asks credit to approve a large new account outside policy because the customer is strategically important. What should credit do first?

• A. Apply the exception-approval process and document the credit risk and rationale
• B. Approve the account without review because sales requested it
• C. Refuse every strategic account
• D. Remove all credit limits for new customers

Best answer: A

Explanation: Credit policy should allow controlled exceptions when appropriate. The important point is documented risk analysis, approval authority, and terms that match the risk.

Question 2

Topic: Financial analysis

A customer’s revenue is growing, but operating cash flow is negative and accounts payable are stretching. What is the main credit concern?

• A. Sales growth eliminates credit risk
• B. Accounts payable never matters
• C. Negative cash flow is always harmless
• D. Liquidity pressure may affect payment ability despite revenue growth

Best answer: D

Explanation: Credit analysis should consider liquidity and cash conversion, not only revenue. Stretching payables and negative operating cash flow can signal payment stress.

Question 3

Topic: Credit limits

What is the best reason to set a credit limit?

• A. To guarantee every invoice will be paid
• B. To cap exposure at a level consistent with customer risk, payment history, and approval authority
• C. To avoid reviewing customers after onboarding
• D. To replace collection procedures

Best answer: B

Explanation: A credit limit controls exposure. It should reflect risk, terms, history, financial capacity, security, and internal authority.

Question 4

Topic: Collections

A customer is past due, disputes one invoice, and continues ordering new goods. What should the credit team do?

• A. Ignore all balances because one invoice is disputed
• B. Continue shipping without review
• C. Separate the dispute from undisputed balances and decide whether new credit should be held or limited
• D. Send the dispute to sales and close the account record

Best answer: C

Explanation: Collections should distinguish genuine disputes from general delinquency. Credit can protect exposure while the disputed invoice is investigated.

Question 5

Topic: Security

Why might a supplier request a personal guarantee or other security for a higher-risk customer?

• A. To improve recovery options if the customer defaults
• B. To remove the need for all credit analysis
• C. To make payment terms irrelevant
• D. To avoid documenting the account

Best answer: A

Explanation: Security can strengthen the creditor’s position, but it does not replace credit analysis, documentation, or monitoring.

Question 6

Topic: Aging analysis

An aging report shows a customer moving from current to 60-plus days past due over three months. What is the best interpretation?

• A. Aging reports are useful only at year-end
• B. Past-due movement means credit risk is lower
• C. The account should be ignored if sales are increasing
• D. The trend may indicate deteriorating payment behavior and should be reviewed

Best answer: D

Explanation: Aging trends help identify payment deterioration. Credit should review exposure, dispute status, communication history, and collection next steps.

Question 7

Topic: Credit application

Why should a credit application collect ownership, banking, trade-reference, and legal-entity information?

• A. To replace all financial statements
• B. To avoid obtaining signatures
• C. To support identity, risk, limit, terms, and recovery decisions
• D. To make every applicant low risk

Best answer: C

Explanation: Credit applications support verification, analysis, terms, security, and collection actions. They should align with the organization’s credit policy.

Question 8

Topic: Insolvency warning signs

Which pattern is most concerning for credit risk?

• A. A customer pays early and reduces orders
• B. A customer requests extended terms, pays late, disputes routine invoices, and changes banking instructions
• C. A customer asks for a copy invoice
• D. A customer updates a mailing address with supporting documents

Best answer: B

Explanation: Multiple stress indicators matter more than a single routine change. Late payment, extended terms, disputes, and banking changes can indicate financial pressure or control risk.

Question 9

Topic: Cash application

Why is accurate cash application important?

• A. It matters only to auditors
• B. It replaces bank reconciliation
• C. It means credit limits can never be changed
• D. It supports correct aging, collection decisions, customer statements, and credit availability

Best answer: D

Explanation: Misapplied cash can make customers appear overdue or current incorrectly. Accurate application supports reliable credit and collection decisions.

Question 10

Topic: Dispute management

A customer refuses payment because goods were damaged, but no internal owner is assigned to investigate. What should credit do?

• A. Create an owner, timeline, evidence trail, and communication plan for the dispute
• B. Treat the dispute as resolved
• C. Delete the invoice
• D. Stop documenting customer communication

Best answer: A

Explanation: Dispute resolution needs ownership and evidence. Credit should coordinate with sales, operations, and finance while protecting the receivable record.

Question 11

Topic: Ethics

A credit analyst is pressured to hide known payment problems before a major customer review. What is the best response?

• A. Remove unfavorable data
• B. Approve the account because the customer is important
• C. Present the facts accurately and escalate if pressure continues
• D. Tell collections to stop recording calls

Best answer: C

Explanation: Credit decisions require accurate information. Hiding known risks undermines governance and can increase loss exposure.

Question 12

Topic: Portfolio monitoring

Which action best supports ongoing credit-risk management?

• A. Reviewing only new customers
• B. Monitoring limits, aging, payment trends, disputes, and concentration exposure
• C. Removing all account notes
• D. Increasing every limit annually without analysis

Best answer: B

Explanation: Credit risk changes over time. Portfolio monitoring helps identify deteriorating accounts, concentration risk, disputes, and limit issues before losses escalate.

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