AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 231:

  A foreign company could raise capital in the United States using an:

  A. ASP.
  B. ADR.
  C. ARC.
  D. AVS.
  B. ADR.

• Question 232:

  One reason for using a sale and lease-back arrangement in lease financing is to:

  A. create an infusion of cash into the company.
  B. benefit from tax advantages from depreciation.
  C. account for income or costs in one period.
  D. eliminate off-balance sheet debt.
  A. create an infusion of cash into the company.

• Question 233:

  An international company with multiple divisions has several types of common stock. The company spun off a new division that is growing very quickly and needs additional funding, but the parent does not want additional ownership investment or additional voters. The company would MOST LIKELY issue what kind of stock?

  A. Tracking stock
  B. Common stock
  C. Preferred stock
  D. Convertible stock
  A. Tracking stock

• Question 234:

  What type of insurance provides payments to an organization if it is unable to continue operations for some period due to an unforeseen event?

  A. Casualty
  B. Property
  C. Difference in conditions
  D. Business interruption
  D. Business interruption

• Question 235:

  Which of the following would be the most efficient method of reducing the number of cross- border payments between two units of a company?

  A. A pooling system
  B. A re-invoicing center
  C. A netting system
  D. A multicurrency account
  C. A netting system

• Question 236:

  Which of the following is true about disbursement ZBAs?

  A. Their funding requirements are known early in the day.
  B. They are funded by intra-bank transfer.
  C. They are pre-funded from a master account.
  D. They are not recommended in a decentralized environment.
  B. They are funded by intra-bank transfer.

• Question 237:

  A merchant has a chargeback rate of 0.03% on average daily sales of $200,000. After switching to a new merchant acquirer that is a bank, the merchant sees the rate increase to 0.05% or $10,000. The merchant's analysis reveals that the bank maintains its data warehouse in another country where the system network is routinely hacked. What act or standard is being violated?

  A. Bank Secrecy Act
  B. Foreign Corrupt Practices Act
  C. Money Laundering Control Act
  D. Payment Card Industry Data Security Standard
  D. Payment Card Industry Data Security Standard

• Question 238:

  An internal auditor discovers that employees can enter and approve their own wire transfers. This practice violates what internal control?

  A. Adequate segregation of duties
  B. Accurate reporting of cash transactions
  C. Appropriate monitoring of covenant compliance
  D. Proper authorization of investment transactions
  A. Adequate segregation of duties

• Question 239:

  Which of the following would be expected to happen on the ex-dividend date?

  A. The stock is sold with the dividend attached.
  B. The stock price drops.
  C. The stock's volume increases.
  D. The stock's dividend is paid.
  B. The stock price drops.

• Question 240:

  An analyst for a landscaping company wants to adjust her cash-flow forecast to account for the seasonality of outflows. How can this be accomplished?

  A. Simple moving average
  B. Regression analysis
  C. Accounts receivable balance pattern
  D. Contingency forecasting
  B. Regression analysis