AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 91:

  A company pays its vendors with the following methods:

  2,600 checks, averaging $1,000 each, issued on the 15th of the month 1,000 ACH payments, averaging $2,000 each, on Wednesdays 500 ACH payments, averaging $500 each, on the first Monday of the month 10 wires on the last day of the month for approximately $260,000 each If the company has a daylight overdraft agreement, which of the above presents the highest single-day credit risk for the bank if the company enters bankruptcy?

  A. The wires
  B. The ACH payments issued on Wednesdays
  C. The checks
  D. The ACH payments issued on the first Monday of the month
  A. The wires

• Question 92:

  A company is starting a project to redesign its cash management information systems. What would be an important tool in this effort?

  A. ERP software
  B. Treasury operations manual
  C. Cash application
  D. Treasury workstation
  B. Treasury operations manual

• Question 93:

  The amount of the discount required to renegotiate credit terms in EDI depends on which two of the following? I.Present value impact of the timing change II.Credit risks involved III.Revolving credit agreements IV.Transaction costs savings

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

• Question 94:

  All of the following are basic considerations for balance compensation by a company EXCEPT:

  A. relationship management.
  B. budgeting.
  C. differential charges.
  D. annuity factors.
  D. annuity factors.

• Question 95:

  Merchant XYZ has total credit card sales of $20,000 for one day with an average ticket of $200. The merchant's interchange reimbursement fees are 2% and transactions fees are $0.05. This merchant receives net settlement. Which of the following is the value of the deposit for that day?

  A. $19,595
  B. $19,600
  C. $19,995
  D. $20,000
  A. $19,595

• Question 96:

  To acquire an asset without putting debt on the balance sheet, a company should consider which of the following arrangements?

  A. Financial lease
  B. Operating lease
  C. Capital lease
  D. Triple-net lease
  B. Operating lease

• Question 97:

  A multidivisional domestic company with centralized treasury decision-making can potentially utilize intra-company lending to:

  A. reduce the overall liquidity of the company.
  B. establish individual subsidiary borrowing facilities.
  C. source debt in different currencies.
  D. lower the overall cost of short term funds.
  D. lower the overall cost of short term funds.

• Question 98:

  When a company announces a significant and unexpected dividend increase, it signals to the market that management expects:

  A. earnings in future periods will be higher than in past periods.
  B. earnings in future periods will be lower than in past periods.
  C. earnings in future periods will not change.
  D. to split the stock in future periods.
  A. earnings in future periods will be higher than in past periods.

• Question 99:

  Which of the following factors would the cash manager consider when deciding whether to make a payment via Fedwire or ACH? 1.Cost of the payment 2.Payment due date 3.Availability of customer's funds 4.Loss of float

  A. 1
  B. 1 and 2
  C. 3 and 4
  D. 2, 3, and 4
  B. 1 and 2

• Question 100:

  The PRIMARY objective of the AFP Account Analysis Standard is to help cash managers in which of the following areas?

  A. Automating account analysis reporting
  B. Unbundling bank charges
  C. Comparing costs among banks
  D. Setting target balances
  C. Comparing costs among banks