AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 731:

  The treasury analyst at RST Corporation has been asked to forecast cash levels for the company's year-end balance sheet. The analyst has been given the following information:

  

  What should the analyst project as the upcoming year-end cash balance?

  A. $39 million
  B. $47 million
  C. $50 million
  D. $74 million
  C. $50 million

• Question 732:

  Which of the following is a type of borrowing between a company and a lender in which the paperwork connected with it is used to simplify the lending process?

  A. Trade credit
  B. Master note
  C. Securitization
  D. Commercial paper
  B. Master note

• Question 733:

  The risk of one bank failing and endangering the liquidity of other banks is called:

  A. sender risk.
  B. receiver risk.
  C. daylight overdraft risk.
  D. systemic risk.
  D. systemic risk.

• Question 734:

  Which of the following types of payments would NOT be included in cash flow forecasting?

  A. Sight drafts
  B. Returned items
  C. Direct deposit
  D. Notional transfers
  D. Notional transfers

• Question 735:

  Which of the following would MOST directly affect a company's dividend policy?

  A. Cost of capital
  B. The clientele effect
  C. A loan covenant
  D. Stock price
  C. A loan covenant

• Question 736:

  Representations and warranties in a loan agreement refer to which of the following?

  A. The financial condition of the borrower during the term of the loan
  B. Violations of loan covenants and material adverse changes
  C. Conditions at the time the agreement is executed
  D. Limitations that restrict the borrower's activities to protect the lender
  C. Conditions at the time the agreement is executed

• Question 737:

  A customer buys a laptop for $850 and a CD for $13. Only items with sale price of $15 and greater are subject to value added tax (VAT). Assuming VAT of 8.5%, how much tax does the customer incur at the point of sale?

  A. $72.25
  B. $73.36
  C. $722.25
  D. $922.25
  A. $72.25

• Question 738:

  Which of the following is responsible for liquidating the assets of failed financial institutions?

  A. The Federal Reserve Board (FRB)
  B. The Federal Deposit Insurance Corporation (FDIC)
  C. The Office of the Comptroller of the Currency (OCC)
  D. The Bank Insurance Fund (BIF)
  B. The Federal Deposit Insurance Corporation (FDIC)

• Question 739:

  The goal of investor relations is to:

  A. ensure that a company's securities achieve a fair valuation in the marketplace.
  B. ensure equity analysts have all available company information at any point in time.
  C. maintain the company's stock listing on the NYSE.
  D. make sure all shareholders cast a vote at the annual meeting.
  A. ensure that a company's securities achieve a fair valuation in the marketplace.

• Question 740:

  The owner of XYZ Company just completed an initial public offering. Which of the following is the MOST LIKELY outcome?

  A. The owner will gain more operational control.
  B. The owner will be able to diversify his personal portfolio.
  C. The company will save on accounting costs.
  D. The company will increase productivity.
  B. The owner will be able to diversify his personal portfolio.