AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 241:

  As a result of an employee's intentional actions, an electronic payment to a supplier was misdirected to an unauthorized account. This is an example of which of the following types of risk?

  A. Process and technology risks
  B. Employee and technology risks
  C. Process and valuation risks
  D. Employee and process risks
  D. Employee and process risks

• Question 242:

  USA Tires, LLC is a U.S. company that manufactures a high performance tire. It has $500 million in annual domestic sales. Customer A is located 50 miles from the USA Tires warehouse. Customer A orders 1,000 high performance tires per month at a price of $50 per tire. It has credit terms of 30 days. Customer B is located 40 miles from the USA Tires warehouse. Customer B orders 1,000 high performance tires per month at a price of $60 per tire. Customer B has credit terms of 20 days. Which legislation is being violated in the scenario?

  A. Glass-Steagall Act (1933)
  B. Robinson-Patman Act (1936)
  C. Fair Credit Billing Act (1975)
  D. Fair Debt Collection Practices Act (1978)
  B. Robinson-Patman Act (1936)

• Question 243:

  At the end of the year, ABC Company's actual revenue is $85,000,000 versus budget revenue of $90,000,000. Actual operating expenses are $20,000,000 versus budget operating expenses of $22,000,000. Budget variance analysis would indicate a(n):

  A. favorable revenue variance and an unfavorable operating expenses variance.
  B. favorable revenue variance and a favorable operating expenses variance.
  C. unfavorable revenue variance and a favorable operating expenses variance.
  D. unfavorable revenue variance and an unfavorable operating expenses variance.
  C. unfavorable revenue variance and a favorable operating expenses variance.

• Question 244:

  Companies in the U.S. with a nationwide over-the-counter/field bank collection and concentration system often deal with:

  A. few small financial institutions.
  B. one major banking institution with branch offices at all locations.
  C. many small financial institutions.
  D. one major bank with corresponding relationships.
  C. many small financial institutions.

• Question 245:

  Which of the following is an opportunity cost of maintaining excess liquidity?

  A. Loss of time in securing credit
  B. Increase in interest earnings
  C. Decreased commitment fees
  D. Interest paid on outstanding debt
  D. Interest paid on outstanding debt

• Question 246:

  A U.S. company has a secured committed line of credit of $5.5 million and has an available balance of $4 million. The company successfully transmitted a $5.5 million wire transfer instruction out to the bank via SWIFT. The bank contacted the company and informed it that the wire transfer would not be processed. What is the MOST LIKELY reason the bank gave the company?

  A. Wires exceeding $5 million cannot be transmitted using SWIFT.
  B. The bank imposed a guidance line of credit on the account.
  C. The company exceeded its compensating balance requirement.
  D. The bank refused funding on the company's discretionary line of credit.
  B. The bank imposed a guidance line of credit on the account.

• Question 247:

  Which of the following would be used to evaluate only the effects of varying interest rates while holding all other values constant at their expected levels?

  A. Scenario analysis
  B. Sensitivity analysis
  C. Simulation
  D. Break-even
  B. Sensitivity analysis

• Question 248:

  XYZ Company is considering the purchase of a security that generates a tax equivalent yield of 10% and a tax exempt yield of 7.1%. What is XYZ's marginal investment tax rate?

  A. 29.0%
  B. 36.1%
  C. 40.8%
  D. 61.0%
  A. 29.0%

• Question 249:

  What should a company's senior management consider in their payment policies to eliminate the co-mingling of funds for payables, receivables and foreign exchange transactions?

  A. Required control points
  B. Bank account structuring
  C. Payment laws and regulations
  D. Participants in the payment process
  B. Bank account structuring

• Question 250:

  The renegotiation of trade payment terms in an e-commerce environment should include which of the following?

  A. Application of the payment to the accounts receivable system
  B. NACHA format chosen for the payments
  C. A bank that will process the payment
  D. Evaluation of payment clearing history
  D. Evaluation of payment clearing history