AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 711:

  A Euro denominated payment can be settled through all of the following EXCEPT:

  A. TARGET (Trans-European Automated Real-Time Gross Settlement Express Transfer System).
  B. EBA (Euro Bankers Association).
  C. ACSS (Automated Clearing Settlement System).
  D. Correspondent Banking.
  C. ACSS (Automated Clearing Settlement System).

• Question 712:

  Which of the following short-term instruments is used to finance the import or export of goods?

  A. Convertible bond
  B. Government warrant
  C. Bill of lading
  D. Banker's acceptance
  D. Banker's acceptance

• Question 713:

  Which of the following payment instruments can provide predictable collection float? I.Wire transfer II.Check III.ACH IV.Cash

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

• Question 714:

  A manager has prepared an analysis of five investment alternatives. Prior to selecting which alternative to invest funds in, the manager calculated the anticipated return for all options. The manager is only going to invest in one alternative. The four investments that are not chosen are:

  A. a cost of capital.
  B. a loss of leverage.
  C. an opportunity cost.
  D. a cost benefit.
  C. an opportunity cost.

• Question 715:

  Private companies usually go public by making an initial public offering. What is the term for offering subsequent shares in the market?

  A. Common
  B. Underwritten
  C. Regulated
  D. Seasoned
  D. Seasoned

• Question 716:

  A company recently implemented a treasury code of conduct, which defined appropriate actions and business behaviors. The company developed policies and procedures that assigned duties to managers, and distributed the code to all treasury employees. The treasury group could have improved upon this implementation by doing which one of the following?

  A. Having the code of conduct reviewed by the marketing department
  B. Providing training on the code to all employees
  C. Having the code certified under Sarbanes-Oxley Act requirements
  D. Incorporating the code under its disaster recovery plan
  B. Providing training on the code to all employees

• Question 717:

  A company is experiencing the following long-term trend on a month-over-month basis:

  

  With all other income, expenses, long-term assets and liabilities remaining stable, this trend would MOST LIKELY prompt what action by the company?

  A. Financing working capital requirements
  B. Repaying short-term debt
  C. Reducing labor costs
  D. Factoring accounts receivable
  B. Repaying short-term debt

• Question 718:

  Company XYZ has stable cash flows and sizable assets. The board of directors compared its WACC with its own industry's averages and determined that it may be at a competitive disadvantage. In order to become more competitive, what action will XYZ MOST LIKELY take?

  A. Issue new debt and repurchase common shares.
  B. Issue more common shares and retire debt.
  C. Reduce the dividend for a few quarters.
  D. Issue preferred shares with convertible warrants.
  A. Issue new debt and repurchase common shares.

• Question 719:

  Evaluating the liquidity needs of an organization is a function of:

  A. long-term investment yield forecasting.
  B. long-term cash flow forecasting.
  C. short-term investment yield forecasting.
  D. short-term cash flow forecasting.
  D. short-term cash flow forecasting.

• Question 720:

  Company XYZ is not sure which direction interest rates are headed. Which of the following would be MOST suitable?

  A. An interest rate cap
  B. An interest rate floor
  C. An interest rate swap
  D. An interest rate collar
  D. An interest rate collar