AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 1:

  The Sarbanes-Oxley Act of 2002:

  A. created the Financial Accounting Standards Board.
  B. created the Public Company Accounting Oversight Board.
  C. created the Public and Private Corporate Governance Board.
  D. created the International Accounting Standards Convergence Board.
  B. created the Public Company Accounting Oversight Board.

• Question 2:

  Which of the following is true when a company purchases goods using trade credit from suppliers?

  A. The buyer incurs no added cost if it pays on time.
  B. The supplier will charge interest to the buyer.
  C. The buyer should record this as a long-term liability.
  D. The supplier places a lien on the goods sold until payment.
  A. The buyer incurs no added cost if it pays on time.

• Question 3:

  Which of the following is subject to transaction exposure?

  A. A U.S. company's foreign subsidiary in Japan has a receivable denominated in Yen.
  B. A Japanese company's foreign subsidiary in the U.S. has a receivable denominated in Yen.
  C. A U.S. company's foreign subsidiary in Japan has a payable denominated in Yen.
  D. A Japanese company's foreign subsidiary in the U.S. has a payable denominated in dollars.
  B. A Japanese company's foreign subsidiary in the U.S. has a receivable denominated in Yen.

• Question 4:

  A new retail chain has decided to offer 3 payment methods: cash, cards and checks. It was determined that card payments would be the biggest sales driver and projects have been scheduled accordingly. To be in line with this strategy, which of the following should be the priority?

  A. Marketing announcement of card acceptance
  B. Acceptance of closed-loop credit cards
  C. Accounting set-up for card acceptance
  D. Becoming PCI DSS compliant
  D. Becoming PCI DSS compliant

• Question 5:

  A treasury manager at a multinational manufacturing corporation assigned a team of analysts to re-engineer the company's FX exposure management program. Which of the following alternatives would BEST accomplish this objective?

  A. Leading and lagging
  B. Re-invoicing
  C. Transfer pricing
  D. Value dating
  B. Re-invoicing

• Question 6:

  In predicting collections from credit sales, a cash manager can obtain prior period information from which of the following sources? I.Customer payment histories II.The company's concentration bank III.The accounts receivable department IV.The accounts payable department

  A. I and II only
  B. III and IV only
  C. I and III only
  D. I, III, and IV only
  C. I and III only

• Question 7:

  An international organization has decided to move its treasury operations to the head office in Paris, France. The company's goal is to establish the treasury as the primary provider of banking services and all company financing. What would the new proposal be an example of?

  A. A hybrid treasury structure
  B. A decentralized and a re-engineered organization
  C. An in-house bank and a centralized organization
  D. An outsourced shared service center
  C. An in-house bank and a centralized organization

• Question 8:

  All of the following items may be found on an income statement EXCEPT:

  A. cost of goods sold.
  B. prepaid expenses.
  C. interest expense.
  D. taxes.
  B. prepaid expenses.

• Question 9:

  In order to be defined as independent, a corporate director:

  A. cannot have owned preferred stock shares in the company.
  B. cannot have a material relationship with the company.
  C. cannot meet regularly with executive management outside of board meetings.
  D. cannot have been an employee with the company during the past three years.
  B. cannot have a material relationship with the company.

• Question 10:

  Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features?

  A. Master note
  B. Banker's acceptance
  C. Indenture agreement
  D. Note purchase agreement
  A. Master note