AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 761:

  A large U.S. company is planning to fund its Canadian subsidiary. Currently, the Canadian dollar is trading at CAD 1.25 per U.S. dollar, and the U.S. dollar is expected to depreciate in the near term. To manage this FX exposure, what technique should the company implement?

  A. Leading
  B. Re-invoicing
  C. Lagging
  D. Multicurrency accounts
  A. Leading

• Question 762:

  A company wants to gather daily balance reporting from its international subsidiaries' bank accounts. Which of the following systems would allow the company's bank to gather the balance positions from the local banks?

  A. SWIFT
  B. CHIPS
  C. Giros
  D. EDI
  A. SWIFT

• Question 763:

  The Treasurer of a publicly-traded U.S. company discovers several large payments which were made from the company's disbursement account without proper approval. These unauthorized payments represent an exposure to penalties imposed by which regulator?

  A. The Office of the Comptroller of the Currency
  B. The Office of Foreign Assets Control
  C. The Public Company Accounting Oversight Board
  D. The Financial Industry Regulatory Authority
  C. The Public Company Accounting Oversight Board

• Question 764:

  A treasury manager expects the price of a commodity to be highly volatile between the time of option purchase and exercise. Which option style would provide the greatest flexibility?

  A. American Style
  B. Bermuda Style
  C. Cayman Style
  D. European Style
  A. American Style

• Question 765:

  Given a corporate tax rate of 34%, a tax-exempt yield of 7% is equivalent to a taxable yield of:

  A. 4.6%.
  B. 7.0%.
  C. 10.6%.
  D. 34.0%.
  C. 10.6%.

• Question 766:

  If the Federal Reserve Board increased the discount rate, you would expect:

  A. long-term bonds to increase more in price than short-term bonds.
  B. short-term bonds to decrease more in price than long-term bonds.
  C. long-term bonds to decrease more in price than short-term bonds.
  D. that there would be no effect on either long- or short-term bond prices.
  C. long-term bonds to decrease more in price than short-term bonds.

• Question 767:

  Use the financial statement for XYZ Company in the exhibit to answer this question.

  

  What is the cash flow from operating activities for the current year?

  A. $(700,000)
  B. $700,000
  C. $900,000
  D. $1,700,000
  B. $700,000

• Question 768:

  Disbursement float includes which of the following three float time intervals?

  A. Mail, processing, and availability float
  B. Mail, invoicing, and availability float
  C. Mail, processing, and clearing float
  D. Mail, invoicing, and clearing float
  C. Mail, processing, and clearing float

• Question 769:

  A manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash manager was unable to process the following payments: P-card issuer: $25,000 Payroll: $125,000 Bond interest payment: $200,000 Vendor payments: $260,000 Utilities: $50,000 The cash manager does not have a way to confirm the receivable amounts deposited at the bank. The suppliers are threatening to stop shipments due to the delay in payment and the loss of supplier shipments would threaten the company's

  just-in-time production. What concern should the company have?

  A. Supplier risk
  B. Default on the debt
  C. Electronic security risk
  D. Contingency plan failure
  B. Default on the debt

• Question 770:

  This question is based on the following data describing a company's actual deposits.

  

  If a five-day moving average is used, what was the deposit forecast for day six?

  A. $75
  B. $85
  C. $90
  D. $110
  C. $90