Your Path to Success: How to Pass the AFP CTP Certified Treasury Professional Exam

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

BF Company, a manufacturer of food products, reported financial information shown in the Exhibit for the end of the year. BF Company is subject to covenants in its commercial paper program. It is in compliance with which of the following?

Which of the following statements are true about collected balances?

I. They can be lower than ledger balances.

II. They are influenced by the bank's availability schedule.

III. They exclude negative account balances.

IV. They may generate an earnings credit.

XYZ Company is a net borrower. Its cost of funds is 5.0%, its earnings credit rate is 3.0%, and the reserve requirement is 10%. Average service fees are $50,000 per month. Its average ledger balance is $2,000,000, and its average collected balance is $1,000,000. What are the collected balances required to pay for services during a 30-day month?

An auto manufacturing plant in Michigan has high scheduled demand for its product. If the company does not have a long-term contract for raw materials, what type of exposure could it face?

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?

Operational risk is defined as the risk of direct or indirect losses resulting from external events or failure of internal resources. As treasury departments maintain legacy systems that must be integrated into more complex technology, one would expect that:

A United States company must remit a dollar royalty payment to its Japanese subsidiary. Cash settlement of the payment would typically be made by which of the following?

Which of the following is a disadvantage of e-commerce?

On a company’s financial statements, an increase in accounts receivable is reflected as a(n):

The following information about a company is at the end of its fiscal year.

The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%. The company's current ratio is:

Company A anticipates the following cash inflows and outflows for the next three months:

If the company's treasurer is preparing a cash-flow projection for Month 2, and he is focusing purely on items that can be projected with a fair degree of certainty, what will the net projection be?

The PRIMARY difference between defined benefit and defined contribution pension plans is whether the employee or the employer:

All of the following are objectives of credit management EXCEPT:

Companies implement EDI in order to realize which of the following benefits?

I. Decreased error rates

II. Decreased order lead time

III. Improved productivity

IV. Improved cash forecasting

According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?

What type of insurance provides payments to an organization if it is unable to continue operations for some period due to an unforeseen event?

A measure of the incremental impact of a company's investments on market capitalization is known as:

The delay between the time a check is deposited and the time the company's account is credited with collected funds is known as:

Which of the following is normally MORE significant for a corporation?