AFP AFP-CTP Online Practice Questions and Exam Preparation

AFP AFP-CTP Online Questions & Answers

• Question 911:

  The key parties involved in a disaster recovery plan are generally classified as internal resources or external counterparties. When evaluating the risks of both parties, which of the following can be assumed?

  A. The review of internal resources takes greater importance.
  B. The infrastructure linking the parties' systems must be considered.
  C. The disaster recovery sites of both parties must be in the same location.
  D. The systems used by both parties must be compatible.
  B. The infrastructure linking the parties' systems must be considered.

• Question 912:

  A company is evaluating its employee healthcare expense and payroll applications. If the company wishes to provide maximum convenience to its employees, which payment method is the BEST choice?

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

• Question 913:

  What is the correct sequence of the following disbursement float events, from first to last step?

  1.

  Check clears back to drawee bank account.

  2.

  Check is encoded and enters the clearing system.

  3.

  Depositor receives ledger credit.

  4.

  Lockbox bank receives check.

  A. 3, 2, 1, 4
  B. 4, 2, 1, 3
  C. 4, 2, 3, 1
  D. 4, 3, 2, 1
  C. 4, 2, 3, 1

• Question 914:

  XYZ Holdco has multiple credit facilities with a bank under a borrowing agreement that includes certain covenants. A fire has destroyed the manufacturing plant owned by ABC, one of the XYZ subsidiaries that is part of the credit facilities. All loans, including the ABC loan, are up to date and being repaid as required. However, after the fire, the bank notified XYZ that it was in default. Which one of the following covenants is MOST LIKELY a term of the borrowing agreement?

  A. Technical default
  B. Cross-default provisions
  C. Material adverse change
  D. Total liabilities to assets ratio default
  C. Material adverse change

• Question 915:

  Which of the following is LEAST important when a cash manager determines a company's short-term cash position?

  A. Receipts and disbursements forecasts
  B. Pro forma financial statements
  C. Payments of dividends
  D. Disbursement clearing patterns
  B. Pro forma financial statements

• Question 916:

  An employee earning $80,000 per year decides to begin contributing to his company's 401(k) plan effective January 1st. Assuming he is in the 25% tax bracket, contributes 15% of his pay into the plan each month and receives a company match of $0.50 for every dollar he contributes, what is his taxable compensation that year?

  A. $51,000
  B. $68,000
  C. $74,000
  D. $80,000
  B. $68,000

• Question 917:

  Which of the following is a regulation that is having a major impact on the treasury profession?

  A. Gramm-Leach-Bliley Act
  B. Monetary Control Act
  C. Patriot Act
  D. Glass-Steagall Act
  C. Patriot Act

• Question 918:

  A company plans to perform an A/R cash analysis based on the following sales information:

  

  60% of sales are collected within two months after the sale. After three months, $135,000 of January's sales has been collected. What was the percentage of January's sales collected in April?

  A. 10%
  B. 30%
  C. 60%
  D. 90%
  B. 30%

• Question 919:

  The stock of a manufacturing company is priced so that its expected rate of return is below its required rate, as calculated by the Capital Asset Pricing Model (CAPM). Which of the following will occur in an efficient capital market?

  A. Buying pressure for the firm's stock will drive the price up.
  B. Buying pressure for the firm's stock will drive the price down.
  C. Selling pressure for the firm's stock will drive the price up.
  D. Selling pressure for the firm's stock will drive the price down.
  D. Selling pressure for the firm's stock will drive the price down.

• Question 920:

  An increase in the availability float on a company's collections would cause a reduction in which of the following?

  I. Earnings credit

  II. Ledger balance

  III. Service charges

  IV.

  Collected balance

  A. I and II
  B. I and IV
  C. I, II, and III
  D. II, III, and IV
  I. Earnings credit II. Ledger balance III. Service charges IV. Collected balance
  B. I and IV