AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 901:

  In this situation, the net earnings credit amount for the month would show:

  

  A. a deficiency of $1,725.
  B. an excess of $1,425.
  C. an excess of $1,850.
  D. an excess of $2,100.
  B. an excess of $1,425.

• Question 902:

  A supplier can improve invoicing float by:

  A. renegotiating credit terms.
  B. establishing a bank lockbox.
  C. shortening its order-entry process.
  D. factoring its receivables.
  C. shortening its order-entry process.

• Question 903:

  Which of the following is NOT one of the three goals of a disbursement system?

  A. Bank relationship management
  B. Information access
  C. Fraud prevention
  D. Centralize payments
  A. Bank relationship management

• Question 904:

  A company can dispute any check alterations within how many days after the bank statement has been sent?

  A. 30 days
  B. 60 days
  C. 90 days
  D. 180 days
  A. 30 days

• Question 905:

  The MOST effective way to reduce the internal risk of technology as it relates to critical treasury functions is to:

  A. implement an integrated accounts payable module as part of an automated general ledger package.
  B. secure complex spreadsheets with formula protection and multi-level password access.
  C. back up complex spreadsheets from PCs onto a local area network server daily.
  D. replace complex spreadsheets with certified treasury systems.
  D. replace complex spreadsheets with certified treasury systems.

• Question 906:

  A netting system can be used for all of the following EXCEPT:

  A. intracompany transactions.
  B. giro payments.
  C. third-party payments or receipts.
  D. foreign exchange transactions.
  B. giro payments.

• Question 907:

  Which of the following is a service typically provided by an investment custodian?

  A. Tax advice
  B. Audit service
  C. Portfolio reporting
  D. Written policy
  C. Portfolio reporting

• Question 908:

  A nationwide discount retailer is re-evaluating financing methods since the most-popular and most-expensive electronics "must-have" item for this year is set to ship from factories in China. Which of the following credit facilities would be MOST effective for the retailer to use?

  A. Factoring
  B. Asset-based credit line
  C. Securitization
  D. Commercial paper issuance
  B. Asset-based credit line

• Question 909:

  Based on the following information, how much money will XYZ Company owe the bank for monthly service charges after the earnings credit is applied? Average Ledger Balance$500,000 Deposit Float$10,000 Reserve Requirement10% Earnings Credit Rate5% Monthly Service Charges$5,000 Days in month30

  A. $0
  B. $68.49
  C. $436.99
  D. $561.64
  A. $0

• Question 910:

  EML Inc., which has $600 million in outstanding debt, is preparing to issue commercial paper in excess of $100 million within the next six months. The new assistant treasurer has recently spent time getting to know the issuing and paying agent, the rating agency analyst, and the legal counsel, and has been following the financial markets. What is this is an example of?

  A. Benchmarking with peers
  B. External collaboration
  C. Decentralized control
  D. Risk transfer
  B. External collaboration