AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 481:

  A bank uses all of the following to determine whether a company's balances are sufficient to compensate for services EXCEPT:

  A. collected balances.
  B. ledger balances.
  C. earnings credit rates.
  D. reserve requirement.
  B. ledger balances.

• Question 482:

  An art history museum has recently finished renovating its new location. Before the move, the treasurer considers purchasing additional insurance to protect the art during transit. What form of additional insurance should the treasurer choose?

  A. Special multi-peril (SMP)
  B. Business interruption
  C. General liability
  D. Difference in conditions (DIC)
  D. Difference in conditions (DIC)

• Question 483:

  Given the above information,

  

  if the risk manager adds a tank at its second facility, what loss control technique is being used?

  A. Exposure avoidance
  B. Limiting contractual acceptance of risk
  C. Catastrophic loss control
  D. Separation of exposures
  D. Separation of exposures

• Question 484:

  A call option is said to be "in-the-money" when the market price of the underlying security is:

  A. lower than the strike price.
  B. same as the strike price plus premium.
  C. higher than the strike price.
  D. same as the strike price minus premium.
  C. higher than the strike price.

• Question 485:

  Which of the following should be considered in the design of a collection system for a supermarket or retail store that does not offer proprietary credit cards? I.Coin and currency handling II.Debit card acceptance III.Retail lockbox IV.Third-party credit cards

  A. I only
  B. II and IV only
  C. I, II, and IV only
  D. I, II, III, and IV
  C. I, II, and IV only

• Question 486:

  QRT Corporation uses exponential smoothing in its cash flow forecasting model. Five days are used to calculate the moving average forecast.

  

  If the value of the smoothing constant is .60, what is the exponential smoothing forecast for day 7?

  A. $2,000,000
  B. $2,052,000
  C. $2,060,000
  D. $2,400,000
  B. $2,052,000

• Question 487:

  As an internal control tool, what does the matching of an invoice to the original purchase confirm?

  A. The placement of the order
  B. The fulfillment of the order
  C. The execution of the order
  D. The payment of the order
  A. The placement of the order

• Question 488:

  The company's monthly credit sales are in Table 1.

  

  The company's receivables collection pattern is in Table 2. If this company's accounts receivable on March 31 is $0, what would the accounts receivable balance be at the end of July? Assume a 90-day quarter.

  A. $845,000
  B. $1,205,000
  C. $1,545,000
  D. $1,580,000
  C. $1,545,000

• Question 489:

  The before-tax cost of long-term debt is 10% and the cost of equity is 12%.

  

  The marginal tax rate is 35%. The company's weighted average cost of capital is:

  A. 6.3%.
  B. 8.3%.
  C. 10.6%.
  D. 11.3%.
  B. 8.3%.

• Question 490:

  All of the following would encourage a company operating nationwide to develop multiple banking relationships EXCEPT:

  A. enhanced credit availability.
  B. availability of specialized services.
  C. geographic proximity.
  D. administrative cost savings.
  D. administrative cost savings.