AFP CTP Exam Practice Test Instant Access

Question 1

A wholesale lockbox system does which of the following?

ARelies on high speed automation

BProvides information about invoices

CProcesses small dollar remittances

DRequires standard scannable documents

Answer : B

Question 2

Which of the following is considered a financing decision?

AIssuing medium-term bonds or preferred stock

BComparing risk and return of projects

CAllocating capital among different projects

DDistributing or retaining current earnings

Answer : A

Question 3

In a private label financing arrangement, the seller does which of the following?

ACommits funds to finance accounts receivable.

BOperates its own credit function as a subsidiary.

CReceives the full face value of the sale in most cases.

DLoses authority to decide which customers receive credit.

Answer : D

Question 4

Loss exposures related to treasury management may include which of the following?

AExcessive product recalls

BPBGC violations

CDeterioration of investment principal

DBank consolidations

Answer : C

Question 5

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

Aimplement an integrated accounts payable module as part of an automated general ledger package.

Bsecure complex spreadsheets with formula protection and multi-level password access.

Cback up complex spreadsheets from PCs onto a local area network server daily.

Dreplace complex spreadsheets with certified treasury systems.

Answer : D

Question 6

All of the following are an EDI benefit EXCEPT:

Aimproved productivity.

Blower error rates.

Cimproved cash forecasting.

Dlower start-up costs.

Answer : D

Question 7

When a company creates future receivables and/or payables that are denominated in a currency other than its home or functional currency it is faced with:

Aeconomic exposure.

Btransaction exposure.

Ctranslation exposure.

Dfutures risk exposure.

Answer : B

AFP CTP Certified Treasury Professional Exam Practice Test