AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 571:

  XYZ Inc. is a publicly traded company with revenues of $1B and an operating profit of 7.5%. The treasury organization consists of a treasurer and an assistant treasurer. The assistant treasurer is responsible for the creation and approval of all payments. The treasurer is responsible for compilation of the financial statements. Under Section 404 of the Sarbanes-Oxley Act, what should be viewed as a concern?

  A. Audit committee governance
  B. Segregation of duties
  C. Subcertification
  D. Signature on SEC Form 10-K
  B. Segregation of duties

• Question 572:

  For ABC Company in the last fiscal year, the operating profit was $8,500,000, the tax rate was 33%, the total capital was $75,000,000, and the WACC was 9.7%. What was the EVA for ABC?

  A. $(4,470,000)
  B. $(1,580,000)
  C. $1,225,000
  D. $8,500,000
  B. $(1,580,000)

• Question 573:

  What government legislation holds the CEO of a public company personally liable for the information in financial reports?

  A. Securities Act of 1933
  B. Sarbanes-Oxley Act
  C. Gramm-Leach-Bliley Act
  D. Glass-Steagall Act
  B. Sarbanes-Oxley Act

• Question 574:

  The earnings allowance rate applied to collected balances is usually determined by which of the following rates?

  A. 90-day T-bill
  B. LIBOR
  C. Prime
  D. Fed Funds
  A. 90-day T-bill

• Question 575:

  A large multinational company with multiple autonomous operational entities is MOST LIKELY to operate.

  A. a decentralized treasury structure.
  B. a shared service center.
  C. a centralized treasury structure.
  D. an in-house bank.
  A. a decentralized treasury structure.

• Question 576:

  MCA, Inc. upgraded the Treasury workstation that had been in place for two years and used data from that 24-month period to develop a new short-term forecast. A trend factor was applied to controlled disbursements of 97% on a month-bymonth basis and the variance to actual disbursements is less than 1%. Which of the following model validation techniques was utilized?

  A. In-sample validation
  B. Documentation validation
  C. Ongoing validation
  D. Comparison validation
  A. In-sample validation

• Question 577:

  What does a company with a restrictive current asset investment strategy typically have?

  A. High financing costs
  B. Low accounts receivable balances
  C. High inventory levels
  D. Low tax liabilities
  B. Low accounts receivable balances

• Question 578:

  A corporate compliance officer is drafting an agenda for an ethics training session. Which of the following would NOT be an appropriate item to include?

  A. Discussion of recent cases involving unethical behavior
  B. Presentation of hypothetical situations and how to resolve them
  C. Review and analysis of the costs associated with ethics compliance
  D. Monitoring of a hotline to report governance violations
  C. Review and analysis of the costs associated with ethics compliance

• Question 579:

  If ?20.14 = U.S.$1.00 and .7564 = U.S.$1.00, how many ?= 1.00?

  A. ?00629
  B. ?0.874
  C. ?20.8964
  D. ?58.831
  D. ?58.831

• Question 580:

  The regional offices of ABC Company implemented a system that would allow the employees to pass information between regions in a secure fashion. This system requires that all offices have the same key in order to read messages sent electronically. Which e- commence security type is MOST LIKELY being used?

  A. Secure sockets layer
  B. Layered authentication
  C. Public key infrastructure
  D. Shared secret key system
  D. Shared secret key system