AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 511:

  To arrive at today's projected closing cash position, a cash manager starts with:

  A. the opening bank available balance.
  B. yesterday's projected closing cash position.
  C. the general ledger cash balance.
  D. today's expected settlements.
  A. the opening bank available balance.

• Question 512:

  A construction company just received a notification from its bank advising it of an altered dollar amount on a check. This notification is MOST LIKELY the result of:

  A. the use of positive pay.
  B. the use of controlled disbursement.
  C. automated reconciliation services.
  D. reverse positive pay.
  A. the use of positive pay.

• Question 513:

  In a maturity matching financing strategy, which of the following is financed using short- term sources?

  A. Buildings
  B. Equipment
  C. Accounts payable
  D. Accounts receivable
  D. Accounts receivable

• Question 514:

  The analysis of a company launching an initial public offering includes disclosure of information that may interest investors. It also includes confirmation that financial statements reflect true value under GAAP and other pertinent areas of a company's operations. What is this analysis known as?

  A. SEC Form 10-K
  B. FASB FAS 115
  C. SOX 302 subcertification
  D. Due diligence
  D. Due diligence

• Question 515:

  Which section of the statement of cash flows includes items that represent the cash inflows and outflows related to the daily functions of a company?

  A. Cash flow from financing activities
  B. Cash flow from investing activities
  C. Change in cash balance
  D. Cash flow from operating activities
  D. Cash flow from operating activities

• Question 516:

  A treasurer's role in budgeting is primarily to do which of the following?

  A. Manage short term assets and liabilities.
  B. Monitor foreign exchange risk.
  C. Manage shareholder equity.
  D. Analyze project profitability.
  A. Manage short term assets and liabilities.

• Question 517:

  An auto manufacturing plant in Michigan has high scheduled demand for its product. If the company does not have a long-term contract for raw materials, what type of exposure could it face?

  A. Delivery
  B. Transaction
  C. Economic
  D. Credit
  A. Delivery

• Question 518:

  Which of the following is considered a financing decision?

  A. Issuing medium-term bonds or preferred stock
  B. Comparing risk and return of projects
  C. Allocating capital among different projects
  D. Distributing or retaining current earnings
  A. Issuing medium-term bonds or preferred stock

• Question 519:

  Company ABC is experiencing an increase in bank fees due to its new international customers paying by check. Nearly 15% of all deposited items are international checks. Twenty percent of the company's checks have 1 day of float. Sixty-five percent of the company's checks are on-us items. The company has $300,000 of deposits each day. The company's deposits consist of both cash and checks, split evenly. On a typical day, how much of the deposit will be available immediately?

  A. $60,000
  B. $97,500
  C. $195,000
  D. $247,500
  D. $247,500

• Question 520:

  Treasury management systems help cash managers do which of the following?

  I. Reduce borrowing expenses

  II. Initiate transfers

  III. Determine cash position

  IV.

  Obtain account balances

  A. I and IV
  B. II and III
  C. I, III, and IV
  D. I, II, III, and IV
  I. Reduce borrowing expenses II. Initiate transfers III. Determine cash position IV. Obtain account balances
  D. I, II, III, and IV