AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 281:

  Which of the following is the MOST accurate statement regarding the passage of the Sarbanes-Oxley Act?

  A. It is the latest in a long line of corporate governance acts.
  B. It was the first corporate governance act in American history.
  C. It was a drastic change in the regulation of corporate governance.
  D. It had little effect on corporate governance.
  C. It was a drastic change in the regulation of corporate governance.

• Question 282:

  If a company's pension plan offered its executives the right to contribute a greater percentage of their salary to the plan than the percentage offered to other employees, it would be at risk of violating the ERISA nondiscrimination rule related to what?

  A. Executives' benefits
  B. Salaried employees
  C. Highly compensated employees
  D. Fiduciary standards
  C. Highly compensated employees

• Question 283:

  Treasury management systems and ERP systems allow companies to do all of the following EXCEPT:

  A. reduce cash processing costs.
  B. migrate external data into G/L infrastructure.
  C. increase productivity through seamless exchange of data.
  D. reduce redundant data entry errors.
  A. reduce cash processing costs.

• Question 284:

  A U.S. based multinational company is filing its U.S. tax return and notes that its U.K. subsidiary had pre-tax income equal to $1 million. The U.K. subsidiary paid an effective tax rate on this income of 40%. If the U.S. tax rate is 34%, what will be the amount of the foreign tax credit on the U.S. tax return related to the U.K. income?

  A. $60,000
  B. $280,000
  C. $340,000
  D. $400,000
  C. $340,000

• Question 285:

  A Treasury Management System (TMS) is used to:

  A. obtain account balances.
  B. translate EDI documents.
  C. review bank availability schedules.
  D. open new bank accounts.
  A. obtain account balances.

• Question 286:

  Which of the following can be used for monitoring accounts receivables?

  I. Aging schedule

  II. Credit terms

  III. Days' sales outstanding

  IV.

  Receivables balance pattern

  A. I and II only
  B. I and IV only
  C. I, III, and IV only
  D. II, III, and IV only
  I. Aging schedule II. Credit terms III. Days' sales outstanding IV. Receivables balance pattern
  C. I, III, and IV only

• Question 287:

  If a company does not have cash available to make an interest payment on a bond, the company is experiencing difficulty with its:

  A. profitability.
  B. asset-liability management.
  C. capital structure.
  D. liquidity management.
  D. liquidity management.

• Question 288:

  A lockbox system is characterized by which of the following?

  A. Limited or no deposit information reporting
  B. A large number of cash deposits
  C. Processing of documentary collections
  D. Relatively few collection points
  D. Relatively few collection points

• Question 289:

  The "agency problem" refers to:

  A. management's use of a fiduciary agent for stockholders.
  B. a large and active institutional investor base acting on behalf of individual investors.
  C. stockholders who allow management to take actions that will benefit management.
  D. the internal audit function reporting to the audit committee of the board instead of to management.
  C. stockholders who allow management to take actions that will benefit management.

• Question 290:

  A telecommunications company has decided to sell its call center hosting division. This is an example of what type of financial decision?

  A. Capital structure
  B. Financing
  C. Investment
  D. Accounting
  C. Investment