AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 861:

  A company seeking an insured investment would avoid investing surplus cash in a:

  A. commercial bank.
  B. credit union.
  C. mutual fund.
  D. savings and loan.
  C. mutual fund.

• Question 862:

  XYZ Corporation's current ledger balance of the controlled disbursement account is $1,286,500. Based on the information in the table,

  

  what will the corporation's available balance be at the end of today?

  A. $(251,527)
  B. $126,744
  C. $434,706
  D. $1,748,473
  B. $126,744

• Question 863:

  The year-end income statement and balance sheet accounts for a company as of December 31, Year 1 are shown in the Exhibit.

  If no changes occurred in the current asset and current liability account balances from the beginning of the period, except for cash, what was the net cash flow from operations for Year 1?

  A. $350,000
  B. $365,000
  C. $390,000
  D. $400,000
  D. $400,000

• Question 864:

  The time between receipt of a mailed payment and the deposit of the payment in the payee's account is known as:

  A. collection float.
  B. mail float.
  C. processing float.
  D. availability float.
  C. processing float.

• Question 865:

  A multinational corporation has a successful subsidiary in a country that taxes cross-border dividend payments at 72%. Collections on accounts receivable average 90% per month, and the average rate on local government bond investments is 2.5%. What would be the BEST method for the company to repatriate local profits?

  A. The company charges the subsidiary negotiated licensing fees on proprietary software.
  B. The subsidiary sets up a re-invoicing center in another, tax-friendly country to manage a transfer pricing program.
  C. The subsidiary lends funds to the parent. The loan is not repaid and the subsidiary writes it off.
  D. Set up an in-house bank program at the successful subsidiary to make use of the excess liquidity in-country.
  A. The company charges the subsidiary negotiated licensing fees on proprietary software.

• Question 866:

  A manufacturing company begins using just-in-time (JIT) inventory management. Which JIT-related payment process is MOST LIKELY to be implemented?

  A. Forward dated check
  B. Point of purchase
  C. Paid-on-production
  D. Fedwire
  C. Paid-on-production

• Question 867:

  Sign Company and Paint Company have a twenty-year business relationship, and they work together when sending and receiving payments. Sign Company also does a large amount of business with Brush Company, a subsidiary of Paint Company. Brush Company's Treasurer recently received a memo from the Treasurer of Paint Company reminding it that when dealing with vendors, extensive information is required when receiving or making ACH payments. What ACH payment format are Sign Company and Paint Company MOST LIKELY to use?

  A. CCD
  B. EBPP
  C. CCD+
  D. CTX
  D. CTX

• Question 868:

  Company ABC decides to outsource certain activities to an unrelated company and have that company assume the associated loss exposures. What loss control technique is Company ABC using?

  A. Control of isolated losses
  B. Risk retention group
  C. Separation of exposures
  D. Contractual transfer
  D. Contractual transfer

• Question 869:

  Using a digital certificate when accessing a financial services provider is one way to reduce what kind of risk?

  A. Counterparty risk
  B. Process risk
  C. Reputational risk
  D. Compliance risk
  A. Counterparty risk

• Question 870:

  A KEY feature of municipal bonds is that they are:

  A. exempt from federal income taxes.
  B. issued on a discount basis.
  C. rated by the Comptroller of the Currency.
  D. available through the Treasury Direct Program.
  A. exempt from federal income taxes.