AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 821:

  A company has made an investment of $30,000, which matures in 180 days and pays $800 in interest. Which of the following is the effective annual yield?

  A. 1.31%
  B. 1.33%
  C. 5.33%
  D. 5.40%
  D. 5.40%

• Question 822:

  An accountant is fired after reporting to the SEC that she witnessed the CFO inappropriately reduce expenses ahead of the quarterly earnings announcement. Which of the following would apply?

  A. The accountant is protected by `whistle-blower' laws.
  B. The CFO is liable for Bank Secrecy Act reporting.
  C. The accountant is in violation of Section 404 of the Sarbanes-Oxley Act.
  D. The CFO is protected by the code of ethics.
  A. The accountant is protected by `whistle-blower' laws.

• Question 823:

  Which one of the following is NOT a method used by a company to repurchase stock?

  A. Repurchase in the open market.
  B. Make a tender offer to its stockholders.
  C. Negotiate directly with the board of directors.
  D. Negotiate directly with a major stockholder.
  C. Negotiate directly with the board of directors.

• Question 824:

  A small import/export company, XYZ Company, has recently set up an account with a German firm. The contract between the companies states that XYZ is to be paid as soon as all documents are in order showing that the transaction terms have been met. Which of the following forms of payment drafts would be MOST appropriate for XYZ?

  A. Payable through
  B. Sight
  C. Time
  D. Preauthorized
  B. Sight

• Question 825:

  The Treasury Department of ABC Corporation has been working hard to prevent external fraud from impacting its operating bank accounts. Recently, they implemented protective services on their disbursement accounts. This morning, the treasury analyst realized that an expected sales tax payment to the state of Maryland had not occurred. The analyst knew that it had been successfully initiated yesterday. Which service used by the corporation may need to be adjusted to pay the state of Maryland?

  A. ACH filter
  B. Positive pay
  C. BAI reporting
  D. Payee verification
  A. ACH filter

• Question 826:

  Which of the following will MOST LIKELY be affected when a company changes its terms from net 30 to 2/10 net 30?

  A. Sales revenue
  B. Bad debt charge-offs
  C. Collection expenses
  D. Credit evaluation expenses
  A. Sales revenue

• Question 827:

  Loss exposures related to treasury management may include which of the following?

  A. Excessive product recalls
  B. PBGC violations
  C. Deterioration of investment principal
  D. Bank consolidations
  C. Deterioration of investment principal

• Question 828:

  A portfolio manager's investment policy states that they are not allowed to hold any investments that have extension risk. Which type of investment should the portfolio manager avoid?

  A. REMICs
  B. Ginnie Mae MBSes
  C. Municipal bonds
  D. Treasury notes
  B. Ginnie Mae MBSes

• Question 829:

  Traditionally the primary source of operating risk in the area of external theft or malfeasance has been related to:

  A. the disposition of excess inventories.
  B. the sale of idle or obsolete fixed assets.
  C. the payment of false invoices or check fraud.
  D. the receipt of unrecorded customer payments.
  C. the payment of false invoices or check fraud.

• Question 830:

  A company is concerned that investor dissatisfaction could lead to a rapid change in its board membership. To prevent this, which of the following strategies should the company employ?

  A. Grant shareowners preemptive rights for new shares.
  B. Give shareowners cumulative voting rights.
  C. Stagger the election of its directors.
  D. Allow shareowners to vote by proxy.
  C. Stagger the election of its directors.