Certified Credit Executive® (CCE®)

Certified Credit Executive^® (CCE^®) Exam Study Guide

About this Guide:
This guide presents a listing of suggested study topics and recommended books and material to prepare for the CCE designation exam. Due to the comprehensive nature of the exam, this guide cannot present a listing of every possible topic that can appear on the exam. Depending on your level of proficiency, you may not need to read every book. Some topics are duplicated in these publications. Be sure to spend time on legal and financial issues when preparing for the exam.

About the Exam:
The length and scope of each CCE exam may vary. Traditionally, the exam is comprised of two sections: short answer/essay questions covering a variety of credit, legal and management issues and a case study. The exam measures a candidate's ability to apply concepts to situations or explain how they relate to the field of business credit. The case study will require a candidate to analyze a case company and apply your findings to specific questions.

Candidates may take up to four hours to complete the exam. Many candidates have difficulty with the time constraint. We suggest you take questions, from the Charles Gahala text listed herein, and attempt to answer the questions in one or two well-developed paragraphs. To get a feel for the testing environment, time yourself. Gauge your progress after fifteen minutes. If you are unable to thoroughly discuss a topic in a timed situation, focusing on the topic’s primary issues, you may wish to review the topic in greater detail or continue with these timed exercises.

During the exam if you are uncertain about a question, move on and come back to it later or provide as much information as you know since partial credit is given. If the exam instructions state that a fully developed answer is composed of two or three paragraphs, do not over or under respond to the question. Providing a two page answer where two paragraphs will suffice only eats away at your time. Also, keep in mind that the opposite is true. If you are familiar with a subject, writing a two sentence response is clearly too brief based on the instructions.

Please be aware that the essay portion of the exam and the case study section are each worth approximately fifty points. No one section is more important than the other. The exam you take will note the precise value of each question. Texts and notes may not be used during the exam. Hand-held calculators may be used. Candidates must earn a final score of 70% to pass this examination. And finally, please keep in mind that every test-taker is different. You are the best judge of your study habits and testing strengths and weaknesses.

Suggested Reading:
Depending on an applicant's proficiency, some or all of the following publications are recommended:

Credit Management: Principles and Practices, 3rd edition by Dr. Charles Gahala, CCE
Understanding Financial Statements, 8th edition by Lyn M. Fraser
Manual of Credit and Commercial Laws, 97th edition
Antitrust, Restraint of Trade, and Unfair Competition: Myth Vs. Reality by Wanda Borges, Esq.
How to Write a Credit Policy by Cliff Miller

All of these publications are available for purchase through the NACM Bookstore.

Credit Management: Principles and Practices by Dr. Charles Gahala

This book presents a comprehensive review of the many topics covered by the exam. It is recommended that candidates read the entire book and answer the end of chapter questions. Depending on a candidate's level of knowledge, the other publications listed in this guide should be consulted.

Understanding Financial Statements by Lyn M. Fraser

This book, written in an easy-to-read format, presents a comprehensive look at the subject of financial analysis. Candidates should focus on the meaning of information or interpreting the information presented in financials. Candidates should review this entire book.

Manual of Credit & Commercial Laws by NACM

The Manual presents a comprehensive look at the legal environment of credit. Candidates should pay particular attention to the following chapters:

Chapter 5: Transactional Guide to the Formation, Performance and Enforcement of Contracts
Chapter 7: Uniform Commercial Code: An Overview
Chapter 9: Negotiable Instruments: Notes, Checks, Drafts-How They Work-and Interest Rates
Chapter 10: Secured Transactions: A Step-by-Step Explanation
Chapter 15: Reclamation, Stoppage in Transit, and other Return of Goods Remedies
Chapter 17: Bad Check Laws
Chapter 19: A Creditor's Guide to the Bankruptcy Process
Chapter 20: Alternative to Forcing a Financially Distressed Debtor into Bankruptcy
Chapter 22: Consumer Protection Legislation-An Overview
Chapter 23: Antitrust and Trade Regulation for Credit Groups and Credit Grantors
Chapter 25: Compliance Issues and Regulations

The National Education Department
The National Association of Credit Management
8840 Columbia 100 Parkway
Columbia, MD 21045-2158
Telephone: 410/740-5560
Fax: 410/740-5574
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