AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 491:

  A major toy retailer operates 65 retail stores throughout the Midwest. Which of the following credit terms is MOST LIKELY to be offered to this company by its suppliers?

  A. Floor planning
  B. Seasonal dating
  C. Factoring
  D. Letter of credit
  B. Seasonal dating

• Question 492:

  Netting is used by which of the following as a cross-border payment technique?

  A. European giro providers
  B. Foreign subsidiaries of a company
  C. Counterparties in a letter of credit transaction
  D. TARGET participants
  B. Foreign subsidiaries of a company

• Question 493:

  What is the premium (price) for an oil contract, if the following conditions are present? LIBOR rate of 5% Out of the money cost of $3 Strike price is $4 In the money price of $1 Speculative premium of $2

  A. $3
  B. $5.25
  C. $7
  D. $7.35
  C. $7

• Question 494:

  When a company must determine the optimal mix of long-term borrowings versus common equity, it is making which of the following types of corporate financial decisions?

  A. Capital structure
  B. Dividend
  C. Financing
  D. Investment
  A. Capital structure

• Question 495:

  A company's accounts receivable balance pattern is shown in the first table. Credit sales are shown in the second table.

  

  What is the cash inflow for the month of August?

  A. $213
  B. $238
  C. $300
  D. $633
  B. $238

• Question 496:

  The credit risk in the settlement of a Fedwire is borne by the:

  A. sending company.
  B. receiving bank.
  C. Federal Reserve.
  D. receiving company.
  C. Federal Reserve.

• Question 497:

  In which of the following instances does the clientele effect come into play?

  A. When a company announces its earnings forecast
  B. When a company submits its 10-Q to the SEC
  C. When a company declares a dividend
  D. When a company increases its sales
  C. When a company declares a dividend

• Question 498:

  Company ABC, with a current debt rating of BBB- from Standard and Poor's, is negotiating a new revolving credit agreement with its lenders. The company anticipates closing on a small acquisition within a year of executing this new agreement and would like maximum flexibility to determine its capital structure. The company is MOST concerned about the lenders' inclusion of A.

  A. ratings trigger.
  B. growth rate covenant.
  C. change in control covenant.
  D. limit on internal financing.
  A. ratings trigger.

• Question 499:

  Which of the following is an example of a Eurobond?

  A. A bond that is denominated in euros, issued in France by a French company.
  B. A bond that is denominated in euros, issued in the U.S. by a German company.
  C. A bond that is denominated in Japanese Yen, issued in the U.K. by a U.S. company.
  D. A bond that is denominated in U.S. dollars, issued in a European market by a U.S.company.
  C. A bond that is denominated in Japanese Yen, issued in the U.K. by a U.S. company.

• Question 500:

  A small for-profit, start-up company is designing a retirement plan with the goal of minimizing costs and operating income volatility while providing a qualified retirement savings vehicle. Which of the following would be the BEST choice?

  A. Defined benefit plan
  B. Internal Revenue Code 401(k) plan
  C. Hybrid plan
  D. Internal Revenue Code 403 (b) plan
  B. Internal Revenue Code 401(k) plan