APBM APBM Certifications CBM Questions & Answers

• Question 41:

  What refers to the process of evaluating the credit policy to determine if a shift in the customers' payment patterns has occurred?

  A. Payables monitoring

  B. Receivables monitoring

  C. Transactional monitoring

  D. Controlled monitoring

  Correct Answer: B

• Question 42:

  A cash management arrangement used to mobilize funds from decentralized receiving locations, whether they are decentralized company locations, into one or more central cash pools is known as:

  A. Payable Concentration

  B. Concentration banking

  C. Marketable Concentration

  D. None of the above

  Correct Answer: B

• Question 43:

  Accounts that are not funded until the day's checks are presented against the account is called:

  A. Near-cash assets accounts

  B. Preauthorized debit accounts

  C. Disbursement floating accounts

  D. Controlled disbursement accounts

  Correct Answer: D

• Question 44:

  What requires customers to send their payments to a post office box located in the are near where they live rather than directly to the firm is called:

  A. bolt-box system

  B. padlock system

  C. lockbox arrangement

  D. intertwine arrangement

  Correct Answer: C

• Question 45:

  The difference between the balance shown in a firm's checkbook and the balance in the bank's records is called:

  A. Float

  B. Soar

  C. Glide

  D. Drift

  Correct Answer: A

• Question 46:

  Sometimes cash balances are held to enable the firm to take advantage of bargain purchases that might arise, these funds are called:

  A. Speculative balances

  B. Cash flow balances

  C. Check-clearing balances

  D. Tentative balances

  Correct Answer: A

• Question 47:

  Cash balances associated with routine payments and collections are known as:

  A. Compensating balances

  B. precautionary balances

  C. Transaction balances

  D. None of the above

  Correct Answer: C

• Question 48:

  The aggressive policy calls for the greatest use of long-term debt, while the conservative policy requires the least, maturity matching falls in between.

  A. True

  B. False

  Correct Answer: B

• Question 49:

  What calls for matching asset and liability maturities?

  A. Short-term financing

  B. Self-liquidating approach

  C. Long-term financing

  D. Equity spontaneous approach

  Correct Answer: B

• Question 50:

  When finances all of the temporary assets with short-term, non-spontaneous debt and finances its fixed assets with long-term capital, this leads to:

  A. Aggressive approach

  B. Long vs. short term debt

  C. Conservative approach

  D. Debt financing approach

  Correct Answer: A