AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 471:

  The first step in the financial institution and financial services provider (FSP) selection process should be:

  A. selecting a pool of available candidates.
  B. identifying the critical product or service specifications.
  C. establishing a grading mechanism.
  D. evaluating the cost of switching providers.
  B. identifying the critical product or service specifications.

• Question 472:

  A cash manager's recommendation to use procurement cards as a way to reduce accounts payable expense is an example of:

  A. benchmarking.
  B. outsourcing.
  C. re-engineering.
  D. re-invoicing.
  C. re-engineering.

• Question 473:

  T-bill discount rate = 5.85%

  T-bill face value = $100,000

  Initial term = 90 days

  What is the bond equivalent yield on this T-bill?

  A. 5.87%
  B. 5.94%
  C. 5.95%
  D. 6.02%
  D. 6.02%

• Question 474:

  Which of the following statements BEST applies when evaluating fees in an RFP for bank services?

  A. Flexible credit terms are the most important consideration.
  B. Ability of financial institution to customize services is critical.
  C. A proforma account analysis statement captures all pricing and compensation detail.
  D. Accurate evaluation and comparison of the proforma account analysis statements are critical.
  D. Accurate evaluation and comparison of the proforma account analysis statements are critical.

• Question 475:

  Under the strict cash basis of accounting, revenue is recorded when:

  A. the funds are disbursed.
  B. sales agreements are finalized.
  C. the funds are received.
  D. purchase orders are confirmed.
  C. the funds are received.

• Question 476:

  Kensley Biscuit Company Ltd. decides to invest ?25,000 in new packaging equipment to help it keep up with increased demand. As a result of this investment, the company's annual profit improves by ?1,763. If Kensley's cost of capital is 8.25% and its corporate tax rate is 42%, what is its residual income (RI) from the investment?

  A. ?42
  B. ?70
  C. ?,451
  D. ?1,763
  C. ?,451

• Question 477:

  The Treasurer at Worldwide Industries is concerned that its retail lockbox provider, Bank A, is not PCI DSS-compliant. Bank A processes 500,000 checks per month for Worldwide Industries. Worldwide Industries uses a third-party provider, Pay Point, for their credit card payments and funds are wired daily to Worldwide's depository account at Bank A. What should the Treasurer do?

  A. Take no action as Bank A would not be required to be PCI DSS-compliant.
  B. Issue an RFP and search for a lockbox provider that is PCI DSS-compliant.
  C. Stop accepting credit card payments since Bank A is not PCI DSS-compliant.
  D. Notify all customers that pay by credit card that Bank A is not PCI DSS-compliant.
  A. Take no action as Bank A would not be required to be PCI DSS-compliant.

• Question 478:

  Which report is MOST LIKELY to be a current-day information report?

  A. Controlled disbursement totals
  B. Debit/credit transaction listing
  C. Loan transaction detail
  D. Multibank balance report
  A. Controlled disbursement totals

• Question 479:

  A large U.S. based multinational corporation favors use of intra-company loans to repatriate funds from its foreign subsidiaries in order to take advantage of the favorable tax treatment of loans. In those countries which restrict repayment of intra-company loans the corporation may need to:

  A. negotiate repayment with the host government.
  B. conduct the repayment at "arm's length".
  C. pay licensing fees to the host government.
  D. hire a multinational bank to act as an intermediary.
  D. hire a multinational bank to act as an intermediary.

• Question 480:

  Which of the following is indicative of a consolidated operation?

  A. Shared service center
  B. Transfer pricing agreements between subsidiaries
  C. Intracompany loans
  D. Offshore financing
  A. Shared service center