AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 621:

  Which of the following is a typical overnight use of excess cash?

  A. Entering into a repurchase agreement
  B. Investing in Dutch auction preferred stock
  C. Purchasing a Treasury bill
  D. Purchasing a certificate of deposit
  A. Entering into a repurchase agreement

• Question 622:

  The treasury analyst for XYZ Corporation, a small retailer, is trying to forecast daily cash receipts being swept from the store depository accounts. The analyst has been given the data in the table regarding receipts from the last few days. The analyst chooses to use a seven-day simple moving average forecast methodology.

  

  What is the amount that XYZ Corp. would expect to receive on Day 10 (rounded to the nearest whole $)?

  A. $99,400
  B. $100,714
  C. $100,778
  D. $101,571
  B. $100,714

• Question 623:

  In developing an operating budget, the first and MOST critical step is?

  A. Get management approval.
  B. Generate a sales budget.
  C. Establish cost allocations.
  D. Determine capital structure.
  B. Generate a sales budget.

• Question 624:

  Liquidity reserves for opportunistic requirements are typically maintained in the form of:

  A. short-term investments.
  B. short-term borrowing facilities.
  C. working capital.
  D. long-term investments.
  A. short-term investments.

• Question 625:

  The company's monthly credit sales are in Table 1 and its receivables collection pattern is in Table 2. If this company wishes to achieve a second quarter (April-June) DSO of 60 days, what would its ending accounts receivable balance need to be?

  

  Assume a 90-day quarter.

  A. $666,667
  B. $1,333,333
  C. $1,500,000
  D. $3,000,000
  B. $1,333,333

• Question 626:

  A company with constant earnings and excess cash is considering a significant stock repurchase plan. Which of the following is MOST LIKELY to occur?

  A. Earnings per share will increase, and the number of shares outstanding will stay constant.
  B. Earnings per share will decrease, and the number of shares outstanding will increase.
  C. Earnings per share will increase, and the number of shares outstanding will decrease.
  D. Earnings per share will decrease, and the number of shares outstanding will stay constant.
  C. Earnings per share will increase, and the number of shares outstanding will decrease.

• Question 627:

  The right of stockholders to purchase, on a pro-rata basis, any new shares issued by the company is referred to as:

  A. preemptive right.
  B. right of first refusal.
  C. existing ownership right.
  D. prevention of dilution right.
  A. preemptive right.

• Question 628:

  The KEY decision in using CCD+ and CTX formats for B2B payments is:

  A. whether to keep the payment and remittance information together or separate.
  B. whether to use the Internet or an EDI spoke to transmit electronic payments.
  C. whether to use an EDI or a UN/EDIFACT protocol to transfer the value electronically.
  D. whether an evaluated receipts or paid-on-production technique is being used for the transfer.
  A. whether to keep the payment and remittance information together or separate.

• Question 629:

  Which of the following is true about using an RFI in the financial institution and FSP selection process?

  A. RFI is a formal document that outlines objectives, needs and service requirements.
  B. An RFI can speed up the review process.
  C. A response to an RFI is a formal commitment for services.
  D. A response to an RFI is a binding agreement.
  B. An RFI can speed up the review process.

• Question 630:

  The executive management of a utility company would like to determine if it would be more cost effective to hire a third-party provider to handle its bill processing functions, which are currently internally operated. What formal selection method should the company use to obtain proposed solutions and detailed pricing from potential vendors?

  A. Request for Information (RFI)
  B. Request for Proposal (RFP)
  C. Public solicitation
  D. Bidder's conference
  B. Request for Proposal (RFP)