AFP New 2021 CTP Test Tutorial (Updated 932 Questions)
CTP Exam Questions Dumps, Selling AFP Products
NEW QUESTION 187
With the advent of the euro, many U.S. companies have seen a reduction in their number of foreign currency transactions. As a result, these U.S. companies have benefited from which of the following?
I. Reduced FX transaction costs
II. Consolidated banking relationships
III. Simplified exchange risk management
IV.
Reduced need to monitor foreign political climates
- A. I and II
- B. I, II, and III
- C. II and III
- D. I, III, and IV
Answer: B
NEW QUESTION 188
DGB Inc.'s CEO and founder retired shortly after the company went public two years ago. DGB Inc. has recently struggled, and the founder has agreed to return as an independent director. What violation, if any, has occurred?
- A. No violation has occurred.
- B. The cooling-off period has not been met.
- C. Section 404 of the Sarbanes-Oxley Act has been violated.
- D. ERISA disclosure requirements have not been met.
Answer: B
NEW QUESTION 189
A U.S. exporter has agreed to export goods to a Canadian buyer with net 30 payment terms due in Canadian dollars. What type of risk is the exporter exposed to?
- A. Translation exposure
- B. Transaction exposure
- C. Economic exposure
- D. Commodity exposure
Answer: B
NEW QUESTION 190
A small regional bank is losing market share in fiduciary services and the CEO has decided to scale back the trust department. Which of the following is considered a core service of a trust department?
- A. Monitoring compliance with audit procedures
- B. Providing consulting services in debt origination
- C. Processing drafts for collection.
- D. Paying agent for dividend and interest payments
Answer: D
NEW QUESTION 191
A comprehensive payables service can do all of the following EXCEPT:
- A. concentrate lockbox deposits.
- B. send checks to a vendor.
- C. wire funds to a bank.
- D. set up ACH transfers.
Answer: A
NEW QUESTION 192
Which statement is true about credit unions?
- A. They can only be chartered by state agencies.
- B. They are not-for-profit organizations.
- C. They offer lending rates similar to other financial institutions.
- D. Their deposits are insured by the FDI
Answer: B
NEW QUESTION 193
In capital budgeting, a company might risk adjust which of the following?
- A. After-tax cost of debt
- B. Times interest earned
- C. Internal rate of return
- D. Weighted average cost of capital
Answer: D
NEW QUESTION 194
Which of the following is an example of an intangible asset?
- A. Depreciation
- B. Goodwill
- C. Prepaid expenses
- D. Uncollected debt
Answer: B
NEW QUESTION 195
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?
- A. Minimum cash flow to total debt of 45%
- B. Minimum working capital of $10,000
- C. Maximum long-term debt to capital of 52.5%
- D. Maximum dividends of 50% of net income
Answer: C
NEW QUESTION 196
The MICR encoding on a check provides all of the following information EXCEPT:
- A. the payee bank's institutional identification number.
- B. the Fed district of the drawee bank.
- C. the dollar amount of the check.
- D. the payor's bank account number.
Answer: A
NEW QUESTION 197
The company's monthly credit sales are in Table 1 and its receivables collection pattern is in Table
2. If this company wishes to achieve a second quarter (April-June) DSO of 60 days, what would its ending accounts receivable balance need to be?
Assume a 90-day quarter.
- A. $1,333,333
- B. $3,000,000
- C. $666,667
- D. $1,500,000
Answer: A
NEW QUESTION 198
A U.S. bank is actively trying to establish its operations in an emerging market country, but is not experiencing much success due to differences in the business culture. To gain some market share, an executive of the bank decides to give the son of a local dignitary a highly paid position in the organization. Furthermore, the dignitary is a person of interest on various terror watch lists. Sanctions can be placed on the bank because the executive did NOT establish compliance with which of the following?
- A. Anti-Money Laundering
- B. Office of Foreign Assets Control
- C. Bank Secrecy Act
- D. Foreign Corrupt Practices Act
Answer: D
NEW QUESTION 199
Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features?
- A. Master note
- B. Indenture agreement
- C. Note purchase agreement
- D. Banker's acceptance
Answer: A
NEW QUESTION 200
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. Type of card accepted
- B. Use of a different terminal
- C. Goods or services sold
- D. Time of batch closure
Answer: A
NEW QUESTION 201
The PRIMARY objective of the AFP Account Analysis Standard is to help cash managers in which of the following areas?
- A. Comparing costs among banks
- B. Unbundling bank charges
- C. Setting target balances
- D. Automating account analysis reporting
Answer: A
NEW QUESTION 202
A treasurer decides to use notional pooling across wholly-owned multiple legal entities instead of wiring money between entity accounts. What specific section in the company's policy allowed the treasurer to make this decision?
- A. Regulatory and legal considerations
- B. Liquidity strategy
- C. Collection strategy
- D. Concentration practices and strategies
Answer: D
NEW QUESTION 203
The time from the deposit of a check in a bank account until the funds can be used by the payee is known as:
- A. processing float.
- B. availability float.
- C. mail float.
- D. collection float.
Answer: B
NEW QUESTION 204
Which of the following forms of payment is covered by Regulation CC?
- A. Debit card
- B. Credit card
- C. Check
- D. Cash
Answer: C
NEW QUESTION 205
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