AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 141:

  Which of the following is subject to translation exposure?

  A. A German company with a subsidiary in Spain
  B. A Spanish company with revenues in euros
  C. A Japanese subsidiary in the United States with U.S. dollar liabilities
  D. A U.K. company that exports goods to the United States
  C. A Japanese subsidiary in the United States with U.S. dollar liabilities

• Question 142:

  Which of the following is an advantage of a decentralized disbursement system?

  A. Local manager autonomy
  B. The elimination of idle cash balances at local banks
  C. The ease of obtaining cash position information
  D. Reduced operating costs
  A. Local manager autonomy

• Question 143:

  A consumer's personal check written to pay an electronics store charge-account bill is returned three times by the depositor's bank as NSF. What process is being used?

  A. Check truncation
  B. Re-presented check entries
  C. Point-of-purchase
  D. Back office conversion
  B. Re-presented check entries

• Question 144:

  Which of the following statements is (are) true about non-repetitive wires?

  I. They may require additional security steps.

  II. They are typically used for cash concentration.

  III.

  They may be used for transactions where dates, parties, and/or amounts may be variable.

  A. III
  B. I and II
  C. I and III
  D. I, II, and III
  I. They may require additional security steps. II. They are typically used for cash concentration. III. They may be used for transactions where dates, parties, and/or amounts may be variable.
  C. I and III

• Question 145:

  A grocery store chain would be likely to use all of the following services EXCEPT:

  A. armored car.
  B. cash vault.
  C. retail lockbox.
  D. debit card.
  C. retail lockbox.

• Question 146:

  A company has a $2 million line of credit requiring a 5% compensating balance on usage. For the next year, the company projects a usage of 75% and a 10.375% interest rate. If the balance requirement is eliminated, by how many basis points will the company's effective interest rate be reduced?

  A. 18
  B. 30
  C. 55
  D. 74
  C. 55

• Question 147:

  ASC Topic 815 (FAS 133) is applicable when accounting for which of the following?

  A. Gain on an equity investment
  B. Purchase of a bond investment
  C. Market value of collateral
  D. Purchase of a forward
  D. Purchase of a forward

• Question 148:

  The seller's cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30. What is the seller's net benefit (loss) if the buyer takes the discount and pays by day 10?

  A. $3,986.89
  B. ($3,986.89)
  C. $2,688.93
  D. ($2,688.93)
  D. ($2,688.93)

• Question 149:

  In analyzing the costs for services among several banks, a cash manager should compare all of the following EXCEPT the:

  A. earnings credit rates.
  B. reserve requirements.
  C. ledger balances.
  D. fee structures.
  C. ledger balances.

• Question 150:

  A company has average monthly sales of $2,700, of which 5 percent is on a cash basis, with the remaining sold on open account. The company's accounts receivable aging schedule at the end of March is as follows:

  

  What is the company's DSO?

  A. 38.06
  B. 39.32
  C. 40.06
  D. 41.39
  D. 41.39