AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 321:

  Which of the following global cash concentration methods would be MOST appropriate for a company with operations in the United States, Germany, Mexico, and Japan?

  A. National pooling
  B. Bank overlay structure
  C. Notional pooling
  D. Physical pooling
  D. Physical pooling

• Question 322:

  A treasurer overhears several employees talking about selling their company stock before a pending deal impacts the stock negatively. What action should the treasurer take to control this behavior in the future?

  A. Report the employees to the SEC.
  B. Provide training on ethics and code of conduct.
  C. Contact the investor relations department.
  D. Contact the internal and external auditors.
  B. Provide training on ethics and code of conduct.

• Question 323:

  Which of the following would be considered insurance risk management services?

  A. Information-system consultants who upgrade loss controls
  B. External auditors who are hired to review financial statements
  C. IT professionals who ensure the treasury workstation properly converts FX
  D. Risk group that recommends the CFO approve SOX 404 compliance
  A. Information-system consultants who upgrade loss controls

• Question 324:

  Which two of the following are optimal uses for short-term excess cash?

  I. Pay down credit lines.

  II. Make overnight investments.

  III. Repurchase stock.

  IV.

  Make capital expenditures.

  A. I and II
  B. I and III
  C. II and III
  D. II and IV
  I. Pay down credit lines. II. Make overnight investments. III. Repurchase stock. IV. Make capital expenditures.
  A. I and II

• Question 325:

  Multinational corporations repatriate funds from foreign operations through which of the following?

  A. Dividends and management fees
  B. Reinvoicing and factoring
  C. Multilateral netting system
  D. Letters of credit and documentary collections
  A. Dividends and management fees

• Question 326:

  James Corp has a 7.98% WACC and an assumed tax rate of 30%. James Corp employed 70,000,000 of capital (long-term debt and equity) in a project that generated an operating profit of 9,500,000, after depreciation expense of 300,000. EVA in this case would be:

  A. 764,000.
  B. 1,064,000.
  C. 1,087,940.
  D. 1,274,000.
  B. 1,064,000.

• Question 327:

  On the basis of the information above, what level of net collected balances is necessary to compensate a bank for $1.00 worth of services?

  

  A. $126
  B. $154
  C. $157
  D. $159
  B. $154

• Question 328:

  A company may choose to outsource some of its cash management processes to:

  A. better protect its assets.
  B. increase netting and pooling opportunities.
  C. reduce external fraud.
  D. more easily monitor its banks' creditworthiness.
  A. better protect its assets.

• Question 329:

  A company has transferred all treasury functions to a new office overseas. When preparing the disaster recovery plan, the treasury manager seeks to identify the mission critical functions and then determine what risks the plan should address. Which of the following risks should be the focus of the Disaster Recovery Plan?

  A. The majority of the company's export is to a country with significant currency fluctuations.
  B. The company's decentralized treasury system operates locally with nightly data back-up to the new treasury office.
  C. The corporate liability insurance policy does not cover the international office.
  D. The company's investment portfolio has significant equity ownership in the international office country.
  B. The company's decentralized treasury system operates locally with nightly data back-up to the new treasury office.

• Question 330:

  A company has a $300,000 credit line of which $200,000 was the average amount outstanding for the year. The terms of the loan include a 1/2 of 1% commitment fee on the unused portion, an interest rate of 10%, and a compensating balance requirement of 2% of the total credit line. The company's compensating balances are funded from credit-line borrowings.

  If the company negotiates to eliminate the compensating balance requirement and the average borrowings remain at $200,000, the annual interest rate would be:

  A. 10.00%.
  B. 10.25%.
  C. 10.31%.
  D. 10.57%.
  B. 10.25%.