AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 71:

  As a result of the Sarbanes-Oxley Act, what new entity was established to sanction firms and individuals for audit violations?

  A. The Sarbanes-Oxley Review and Assessment Board
  B. The Accounting Controls Advisory Board
  C. The Public Company Accounting Oversight Board
  D. The Auditing Review Board
  C. The Public Company Accounting Oversight Board

• Question 72:

  Which of the following are basic security issues to be considered in evaluating a treasury management system?

  I. Data recovery

  II. Anti-virus protection

  III. Database access controls

  IV.

  Data integration

  A. I and II
  B. III and IV
  C. I, II, and III
  D. I, III, and IV
  I. Data recovery II. Anti-virus protection III. Database access controls IV. Data integration
  C. I, II, and III

• Question 73:

  Which of the following is NOT a key area to consider when establishing treasury policies?

  A. Equity method investments accounting
  B. Medium-term financing
  C. Management reporting
  D. Foreign currency management
  A. Equity method investments accounting

• Question 74:

  The Treasury Analyst at an investment firm has entered the company into a repurchase agreement with a counterparty at the direction of the Treasury Manager. The compliance office has determined that the trade was done in violation of the company investment policy. The Treasury Manager has the power to approve the execution of trades; however, the Treasury Analyst was not a designated trader on behalf of the firm. Which area of the investment policy was violated by the Treasury Analyst?

  A. Segregation of duties
  B. Delegation of authority
  C. Exception management
  D. Roles and responsibilities
  D. Roles and responsibilities

• Question 75:

  On a statement of cash flow, which of the following items are considered sources of cash?

  I. Increase in short-term investments

  II. Net income

  III. Increase in accounts payable

  IV.

  Decrease in long-term debt

  A. I and III only
  B. II and III only
  C. II and IV only
  D. I, III, and IV only
  I. Increase in short-term investments II. Net income III. Increase in accounts payable IV. Decrease in long-term debt
  B. II and III only

• Question 76:

  Banks offer image exchange as a means to accelerate deposits for their customers. If a customer seeks to take advantage of this service, what should the customer implement?

  A. Check conversion
  B. Re-presented check entry
  C. Remote deposit
  D. Time drafts
  C. Remote deposit

• Question 77:

  A company wishes to monitor and control office expenses incurred by its employees. Which of the following offers the BEST method of providing the employees freedom to choose different vendors while maximizing spending control?

  A. Stored value cards
  B. Purchasing cards
  C. Travel cards
  D. Debit cards
  B. Purchasing cards

• Question 78:

  Which of the following will directly increase a company's cost in a fee-only bank relationship?

  A. A decrease in the reserve requirement
  B. A decrease in ledger balances
  C. An increase in the ECR
  D. An increase in transaction activity
  D. An increase in transaction activity

• Question 79:

  If a company has $126 million in debt at an average cost of 7% and $234 million in equity at a cost of 11%, what is its weighted average cost of capital, assuming a marginal tax rate of 35% and a risk-adjusted rate of 13%?

  A. 8.7%
  B. 9.6%
  C. 10.0%
  D. 10.9%
  A. 8.7%

• Question 80:

  Which of the following is one of the PRIMARY considerations when establishing treasury policies and procedures?

  A. Compliance
  B. Personnel management
  C. Consequential damages
  D. Cost avoidance
  A. Compliance