AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 891:

  A merchant presents 2 different batches of credit card transactions for processing, each batch has the same dollar value and number of transactions, but the fees are different. Which of the following explains why?

  A. Use of a different terminal
  B. Goods or services sold
  C. Type of card accepted
  D. Time of batch closure
  C. Type of card accepted

• Question 892:

  All of the following are objectives of credit management EXCEPT:

  A. evaluating customer creditworthiness.
  B. preparing cash flow forecasts.
  C. maintaining up-to-date records of accounts receivable.
  D. initiating collection procedures.
  B. preparing cash flow forecasts.

• Question 893:

  An electronics manufacturer is attempting to protect itself from financial losses due to projected high warranty claims costs for one of its technically complex products. What kind of assessment should the company perform to determine the appropriate external insurance coverage that would protect it from the claims?

  A. Exposure
  B. Insurability
  C. Avoidance
  D. Quantitative
  D. Quantitative

• Question 894:

  Financing decisions in a budget are used to construct all of the following pro forma financial statement components EXCEPT:

  A. debt.
  B. interest expense.
  C. shareholder's equity.
  D. inventory.
  D. inventory.

• Question 895:

  Company ABC has recently started to experience a significant reduction in funds availability. Which of the following is MOST LIKELY to reduce funds availability?

  A. Ledger balances have increased.
  B. Company negotiated a later availability schedule.
  C. Company no longer pre-encodes its checks for deposit.
  D. Deposits are arriving at bank later, but prior to cutoff time.
  C. Company no longer pre-encodes its checks for deposit.

• Question 896:

  A Chicago meat processor is concerned about the volatility of pork belly prices. Which of the following derivative products would be used to fix these prices within a given range?

  A. Collar
  B. Swap
  C. Cap
  D. Spot purchase
  A. Collar

• Question 897:

  Securities sold by companies in an initial public offering (IPO) arE.

  A. a specific type of security sold by a public company for the first time.
  B. debt securities sold on the open market.
  C. public securities sold by a private company for the first time.
  D. securities sold by a private company to a limited number of investors.
  C. public securities sold by a private company for the first time.

• Question 898:

  Which of the following is NOT an operational risk?

  A. Workers' compensation risk
  B. Fidelity risk
  C. Surety risk
  D. Currency risk
  D. Currency risk

• Question 899:

  Which of the following are differences between securities issued through the primary and private capital markets? I.Cost of issuance and speed of execution II.Investor base III.Reasons for the offering IV.Registration requirements

  A. I, II, and IV
  B. I and III
  C. II and IV
  D. II, III, and IV
  A. I, II, and IV

• Question 900:

  One of the PRIMARY ways the Fed addresses systemic risk is by:

  A. assigning passwords and PINs to identify authorized users of its Fedwire system.
  B. establishing intra-day credit limits for ACH originators.
  C. setting minimum reserve requirements for its member banks.
  D. setting daylight overdraft limits for its member banks.
  D. setting daylight overdraft limits for its member banks.