AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 341:

  A cash manager is responsible for a small subsidiary that has significant funds but only writes one check per month. Which of the following types of accounts would the cash manager use for this subsidiary?

  A. NOW
  B. Demand deposit
  C. Savings
  D. Money Market Deposit Account
  D. Money Market Deposit Account

• Question 342:

  In cash forecasting, which of the following is a certain cash flow?

  A. New product sales
  B. Interest payments on long-term debt
  C. Insurance claims pending settlement
  D. Vendor check-clearing patterns
  B. Interest payments on long-term debt

• Question 343:

  ABC Corporation receives images of paid check exception items from its bank and reviews them daily. What action should be taken on an item where the payee on the image does NOT match the data from ABC Corporation's accounts payable?

  A. Bank alerts payee that check is unmatched.
  B. ABC Company utilizes the holder in due course defense.
  C. Image remains stored on ABC Corporation's network for future customer inquiries.
  D. No-pay decision is communicated to the bank.
  D. No-pay decision is communicated to the bank.

• Question 344:

  Which of the following situations is the best example of transaction exposure?

  A. A U.S. headquartered firm consolidates their foreign subsidiary's financial statements into their home currency.
  B. A company that purchases raw materials locally and sells its products in local markets recently encountered foreign competition.
  C. A U.S. exporter sells merchandise to a French buyer and records a balance receivable with payment terms in euros due in three months.
  D. A multinational corporation uses balance sheet hedging to reduce net exposure of the parent company.
  C. A U.S. exporter sells merchandise to a French buyer and records a balance receivable with payment terms in euros due in three months.

• Question 345:

  A prearranged ACH payment normally includes which of the following?

  I. A fixed payment amount

  II. A provision for immediate availability

  III.

  A predetermined payment date

  A. I and II
  B. I and III
  C. II and III
  D. I, II and III
  I. A fixed payment amount II. A provision for immediate availability III. A predetermined payment date
  B. I and III

• Question 346:

  Which of the following are commonly used for financing accounts receivable?

  I. Factoring

  II. Issuing credit cards

  III. Revolving bank loans

  IV.

  Letters of credit

  A. I and II only
  B. I and III only
  C. III and IV only
  D. I, II, and III only
  I. Factoring II. Issuing credit cards III. Revolving bank loans IV. Letters of credit
  B. I and III only

• Question 347:

  A cash manager should use which of the following techniques to measure the differences among cash flows with different timings and amounts?

  A. Present value calculations
  B. Yield curve analysis
  C. Return on investment D. Exponential smoothing
  A. Present value calculations

• Question 348:

  Which of the following is NOT a drawback to using ROI as a performance measure?

  A. It may be misleading when cash flows are not evenly distributed over time.
  B. It does not consider the profit generated by a project.
  C. It does not include a charge for cost of capital.
  D. It may lead to rejection of a positive NPV project.
  B. It does not consider the profit generated by a project.

• Question 349:

  Which institution or accord was approved in 2009 to strengthen the regulatory capital framework for banks by focusing on minimum capital requirements, supervisory review and market discipline?

  A. FINRA
  B. Basel I
  C. Basel II
  D. CAMELS
  C. Basel II

• Question 350:

  Under a loan agreement, which of the following could be an event of default?

  I. Nonpayment of interest when due

  II. A material adverse change in the condition of the borrower

  III. A debt-to-equity ratio above the limit specified

  IV.

  Shortening the cure period by half

  A. I and IV only
  B. I and II only
  C. II and III only
  D. I, II, and III only
  I. Nonpayment of interest when due II. A material adverse change in the condition of the borrower III. A debt-to-equity ratio above the limit specified IV. Shortening the cure period by half
  D. I, II, and III only