AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 361:

  Usually, corporations receiving dividends from another corporation can exclude 70 percent of dividend payments from income for tax purposes as long as the stock is owned for at least:

  A. 30 days.
  B. 45 days.
  C. 60 days.
  D. 90 days.
  B. 45 days.

• Question 362:

  Which of the following is LEAST likely to appear on an account analysis?

  A. Service charges
  B. Average float balance
  C. Earnings allowance rate D. Money market rate
  D

• Question 363:

  The term "collection float" is defined as the delay between the time the payor:

  A. prepares the check and the payee deposits the check.
  B. mails the check and the payee deposits the check.
  C. mails the check and the check is charged to the payor's account.
  D. mails the check and the payee receives the available funds.
  D. mails the check and the payee receives the available funds.

• Question 364:

  On a daily basis, the cash manager is responsible for all of the following EXCEPT:

  A. initiating funds transfers.
  B. determining the cash position.
  C. reviewing bank service fees.
  D. executing investment and/or borrowing decisions.
  C. reviewing bank service fees.

• Question 365:

  A newly hired Treasurer must establish the organizational structure of the treasury department for ABC Corporation which is a publicly traded multinational organization with sales offices in over 50 countries. There are limited opportunities for

  trading and hedging activity. The first challenge is to identify the most appropriate structure for the treasury group that will provide control, visibility, economies of scale, and lower operating expenses.

  What structure should be chosen?

  A. Centralized Cost Center
  B. Outsourced Cost Center
  C. Regionalized Profit Center
  D. Decentralized Profit Center
  A. Centralized Cost Center

• Question 366:

  A retail lockbox system is characterized by which of the following?

  I. An emphasis on processing cost

  II. Detailed information on discounts taken

  III. Small-dollar amounts per invoice

  IV.

  Multiple invoices per payment

  A. I and II only
  B. I and III only
  C. I, II, and III only
  D. II, III, and IV only
  I. An emphasis on processing cost II. Detailed information on discounts taken III. Small-dollar amounts per invoice IV. Multiple invoices per payment
  B. I and III only

• Question 367:

  XYZ Company experienced a substantial monetary loss due to over exposure to one particular sector of the stock market. The Treasurer had invested in companies tied to five different sectors, but violated the company investment policy by exceeding a 10% limit for any sector. In developing its investment policy, what should XYZ Company have considered to prevent this scenario?

  A. Segregation of duties
  B. Exception management
  C. Internal and external controls
  D. Diversification of investments
  C. Internal and external controls

• Question 368:

  Which of the following is a component of a company's operating budget?

  A. Shareholders equity
  B. Accounts receivable
  C. Long-term debt
  D. Capital investments
  B. Accounts receivable

• Question 369:

  The goal of a successful investor relations program is to ensure:

  A. achievement of the company's earnings-per-share goal.
  B. accurate preparation of financial statements.
  C. on-time filing of reports.
  D. effective two-way communication between a company, the financial community, and other constituencies.
  D. effective two-way communication between a company, the financial community, and other constituencies.

• Question 370:

  What is the authoritative accounting standard-setting body for state and local governments, public schools, state universities, and other government-affiliated agencies?

  A. Financial Accounting Standards Board
  B. Financial Accounting Foundation
  C. Governmental Accounting Standards Board
  D. Governmental Accounting Standards Foundation
  C. Governmental Accounting Standards Board