AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 521:

  Which of the following is an example of a company's internal data used for cash management?

  A. Investment schedules
  B. Money market rates
  C. Incoming wire transfers
  D. Returned deposited items
  A. Investment schedules

• Question 522:

  What activity should the Treasurer be most interested in if core treasury functions were to be compared within the industry or cross-industry for the purpose of identifying "best practices"?

  A. Re-engineering
  B. Outsourcing
  C. Benchmarking
  D. Six Sigma
  C. Benchmarking

• Question 523:

  Which of the following can be considered key responsibilities of daily cash management?

  I. Overseeing compensation for bank services

  II. Management of short-term borrowing and investing

  III.

  Projecting future cash shortages and surpluses

  A. I only
  B. I and II only
  C. II and III only
  D. I, II, and III
  I. Overseeing compensation for bank services II. Management of short-term borrowing and investing III. Projecting future cash shortages and surpluses
  D. I, II, and III

• Question 524:

  Company ABC needs external capital to finance a new product line. Its operating leverage is high, and its revolving credit agreement contains a ratings trigger. What will Company ABC MOST LIKELY do to finance its new product line?

  A. Issue convertible debentures.
  B. Issue long-term notes.
  C. Issue common stock.
  D. Use retained earnings.
  C. Issue common stock.

• Question 525:

  A consumer is presented with payment options from a merchant when making a purchase. The consumer does not wish to share any information that could be later used in identity theft or fraud, while the merchant requires guaranteed payments within 24 hours with no NSFs or declined payments. Which of the following options would suit both the consumer and the merchant?

  A. NACHA's Secure Vault PaymentsTM
  B. Credit card payment
  C. Direct debit
  D. E-check
  A. NACHA's Secure Vault PaymentsTM

• Question 526:

  According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?

  A. A decrease in the tax rate
  B. An increase in the T-bill rate
  C. A decrease in the expected market return
  D. An increase in the company's stock price
  B. An increase in the T-bill rate

• Question 527:

  ABC company has a significant number of customers who are mainly consumers making monthly installment payments. Which one of the following types of lockbox would be the MOST appropriate for ABC to use?

  A. Wholesale
  B. Retail
  C. In-house
  D. Hybrid
  B. Retail

• Question 528:

  The fixed costs to manufacture widgets are estimated to be $54,000. The benefit (sales) of a widget is estimated to be $6.78 per unit, and the variable costs are estimated at $4.48 per unit. What is the estimated break-even point in units for the manufacture of widgets (rounded to the nearest unit)?

  A. 4,796
  B. 7,965
  C. 12,054
  D. 23,478
  D. 23,478

• Question 529:

  Companies implement EDI in order to realize which of the following benefits? I.Decreased error rates II.Decreased order lead time III.Improved productivity IV.Improved cash forecasting

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

• Question 530:

  Which of the following types of risk would an investor who does NOT receive payments on a security under the original terms be subject to?

  A. Price
  B. Credit
  C. Asset liquidity
  D. Foreign exchange
  B. Credit