AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 191:

  The year-end income statement for a company is presented in Table 1. The balance sheet is presented in Table 2.

  

  What is the company's return on equity?

  A. 26%
  B. 37%
  C. 65%
  D. 80%
  C. 65%

• Question 192:

  Which of the following payment types is at the greatest risk for fraud?

  A. Wire transfers
  B. Credit cards
  C. Checks
  D. ACHs
  C. Checks

• Question 193:

  In terms of capital structure, lease financing normally has the same effect as:

  A. investing.
  B. borrowing.
  C. capitalizing.
  D. lending.
  B. borrowing.

• Question 194:

  When evaluating a FSP during the RFP process, a company should place a high value on a FSPs financial strength when the provider:

  A. is located in a remote location.
  B. holds assets for the company.
  C. processes high dollar value transactions.
  D. processes international transactions.
  B. holds assets for the company.

• Question 195:

  A dealer is selling securities to a client. What is the yield/price at which the dealer will sell?

  A. Bid price
  B. After-tax price
  C. Market price
  D. Ask price
  D. Ask price

• Question 196:

  Determining that payments are made to vendors and suppliers based on credit terms is the responsibility of:

  A. the risk manager.
  B. the accounts receivable manager.
  C. the accounts payable manager.
  D. the cash manager.
  C. the accounts payable manager.

• Question 197:

  Treasury uses which of the following internal sources of information in its daily operations?

  A. Product development plans
  B. Information technology budgets
  C. Marketing reports
  D. Sales and purchasing summaries
  D. Sales and purchasing summaries

• Question 198:

  RAL Capital, a lean global financial service provider with revenues of $8 billion, has 10 regional offices located around the world. The RAL global trading groups are structured as profit centers with each center having its own profitability

  targets. The group's clients consist of large multinational corporations and financial institutions that require the buying and selling of large amounts of currency. The Treasurer is considering reorganizing his department into a profit center. The

  group processes millions of transactions every year.

  What is a downside of this scenario?

  A. May become a viable candidate for downsizing or outsourcing.
  B. Need to decentralize treasury operations in order to make a profit center more viable.
  C. Substantial headcount is required to support a profit generation center.
  D. Pressure to produce significant profits may lead to deferred losses and inefficient operations.
  D. Pressure to produce significant profits may lead to deferred losses and inefficient operations.

• Question 199:

  On which exchange is a company's stock traded on the over-the-counter market?

  A. AMEX
  B. FINRA
  C. NASDAQ
  D. NYSE
  C. NASDAQ

• Question 200:

  The USA Patriot Act has added significant amounts of overhead to financial transaction processing organizations to prevent money laundering. If an organization does NOT comply with the terms of this act, what external risk is it exposed to?

  A. Fraud/theft
  B. Legal/regulatory
  C. Financial/budgetary
  D. Procedure/policy
  B. Legal/regulatory