AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 501:

  ABC Company, a leading provider of office supplies, has successfully implemented EDI based on a request from one of its customers. ABC will not only benefit from the strategic alliance that will result, but as more of ABC's customers adopt the program, ABC will also experience a positive impact on its:

  A. EFT costs.
  B. C2C levels.
  C. value added networks.
  D. inventory levels.
  D. inventory levels.

• Question 502:

  A company has multiple wholly-owned subsidiaries that issue their own checks which are signed by head office staff. The company decides to move to electronic payments using their bank's internet-based payment systems to reduce costs. Payments are now initiated by the subsidiaries.What element of the payment policy should be considered if the company still wants to maintain head office control over payments?

  A. Risk mitigation
  B. Objectives and scope
  C. Roles and responsibilities
  D. Performance measurement and reporting
  C. Roles and responsibilities

• Question 503:

  Which of the following techniques would MOST accurately predict a company's daily cash position?

  A. Receipts and disbursements forecasting
  B. Moving averages
  C. Net income averaging
  D. Capital budgeting
  A. Receipts and disbursements forecasting

• Question 504:

  XYZ Company has decided to transition the responsibility for its hedging activities from the local offices to the head office; however, the local offices will continue to choose their own depository banks. Under the new structure, XYZ's treasury operations will be:

  A. centralized.
  B. combined.
  C. decentralized.
  D. shared service center.
  A. centralized.

• Question 505:

  What is the MOST appropriate financial plan when a corporation wishes to establish its overall goals and objectives over a period of time?

  A. Risk plan
  B. Strategic plan
  C. Operating plan
  D. Financing plan
  B. Strategic plan

• Question 506:

  A properly designed concentration system will potentially achieve which of the following results?

  I. Increased authority to field offices

  II. Increased investment income

  III. Improved ability to take discounts

  IV.

  Reduced dependence on third-party concentration vendors

  A. IV only
  B. I and II only
  C. II and III only
  D. II, III, and IV only
  I. Increased authority to field offices II. Increased investment income III. Improved ability to take discounts IV. Reduced dependence on third-party concentration vendors
  C. II and III only

• Question 507:

  The credit management function is responsible for:

  A. establishing the bank network.
  B. forecasting cash flow.
  C. approving customers.
  D. concentrating lockbox receipts.
  C. approving customers.

• Question 508:

  A company enters into a cash flow hedge to offset fluctuations in the value of foreign currency transactions occurring in two years. How should the company record the gains and/or losses on the cash flow hedge in the current year?

  A. The hedged gains and losses are reported in comprehensive income.
  B. The hedged gains and losses are reported in current period income.
  C. The hedged gains and losses are reported in current period income together with the offsetting gains and losses of the foreign currency.
  D. The hedged gains and losses are reported in comprehensive income together with the offsetting gains and losses of the foreign currency.
  A. The hedged gains and losses are reported in comprehensive income.

• Question 509:

  ABC Company offers a discount of 2/10, net 30 to its customers. ABC factored its accounts receivables with an outside vendor, under a "with recourse" arrangement. What impact might this have on the company?

  A. Increase days sales outstanding.
  B. Improve cash conversion cycle.
  C. Reduce bad debt expense.
  D. More customers may take the discount.
  B. Improve cash conversion cycle.

• Question 510:

  Which of the following is an example of an intangible asset?

  A. Goodwill
  B. Depreciation
  C. Uncollected debt
  D. Prepaid expenses
  A. Goodwill