AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 671:

  A main characteristic of a company with regional offices using a centralized treasury function is:

  A. high level of control.
  B. increased borrowing costs.
  C. centrally determined depository accounts.
  D. increased operating costs.
  A. high level of control.

• Question 672:

  The delay between the time a check is deposited and the time the company's account is credited with collected funds is known as:

  A. collection float.
  B. mail float.
  C. processing float.
  D. availability float.
  D. availability float.

• Question 673:

  In terms of targeting a company's capital structure, when is it beneficial to assume a high level of financial risk?

  A. When the economy is rapidly expanding
  B. When the economy is experiencing slow growth
  C. When the company is experiencing growth
  D. When the rate of return on investments is advantageous
  A. When the economy is rapidly expanding

• Question 674:

  All of the following factors influence a company's decision to use electronic commerce EXCEPT:

  A. increased accuracy.
  B. increased inventory levels.
  C. increased information flow.
  D. redefined customer and supplier relationships.
  B. increased inventory levels.

• Question 675:

  Bank A is to pay Bank B $6,000,000 for 10 transactions that occurred throughout the day. Bank B is to pay Bank C $8,000,000 for 13 transactions that occurred throughout the day. Bank B is to pay Bank A $5,000,000 for 17 transactions that occurred throughout the same day. These banks operate using a gross settlement system. How many transactions will occur between these banks to settle the payments?

  A. 2
  B. 3
  C. 30
  D. 40
  D. 40

• Question 676:

  Which of the following services allows a single account to be used by a company with multiple units?

  A. Payor bank services
  B. Check inquiry
  C. Positive pay
  D. High-order prefix
  D. High-order prefix

• Question 677:

  A privately held company is planning to issue an IPO. If the company decides to do so, which of the following will MOST LIKELY result?

  A. Decreased liquidity for the company's stock
  B. Decreased reporting and disclosure costs for company
  C. Increased managerial flexibility for owners of the company
  D. Increased ability to determine company value
  D. Increased ability to determine company value

• Question 678:

  A company with high operating leverage reduces its average cost per unit by 20% as its sales volume increases by 40% annually. This an example oF.

  A. low fixed costs.
  B. low variable costs.
  C. economies of scale.
  D. equal distribution of fixed and variable costs per item.
  C. economies of scale.

• Question 679:

  The treasury management department of a company hires a consulting firm to provide research on how other companies in the industry have structured their treasury operations. This is an example of which practice?

  A. Outsourcing
  B. Benchmarking
  C. Re-engineering
  D. Restructuring
  B. Benchmarking

• Question 680:

  Which of the following is a purpose of the Check 21 Act?

  A. Grant legal status for digital signatures
  B. Foster innovation in the ACH payment system
  C. Facilitate check truncation
  D. Improve check imaging and archiving
  C. Facilitate check truncation