Free AFP CTP Practice Test & Real Exam Questions
Company J is looking to perform an A/R cash analysis based on the following sales information:
60% of sales are collected within two months after sale. After three months, $135,000 of January's sales were collected. What was the dollar amount of January's sales collected in April?
60% of sales are collected within two months after sale. After three months, $135,000 of January's sales were collected. What was the dollar amount of January's sales collected in April?
Correct Answer: A
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A corporate compliance officer is drafting an agenda for an ethics training session. Which of the following would NOT be an appropriate item to include?
Correct Answer: C
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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?
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?
Correct Answer: C
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An evaluated receipts settlement would be MOST commonly used in an environment where:
Correct Answer: D
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An accounts payable manager has been mandated to accept all trade discount opportunities with an effective cost of discount above 25%. An invoice has been presented and approved for payment with terms of 3/5, net
30 days. What is the difference between the effective cost of discount offered, and the 25% rate set by the company?
30 days. What is the difference between the effective cost of discount offered, and the 25% rate set by the company?
Correct Answer: B
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Establishing the authority to open bank accounts is the responsibility of:
Correct Answer: C
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A farmer who plans to sell his/her corn crop in three months would benefit MOST from which of the following?
Correct Answer: A
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There are 31 calendar days in the month, and the opportunity cost of funds is 9%.
What is the annual cost of float for the batches listed?
What is the annual cost of float for the batches listed?
Correct Answer: C
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Company RST is a seasonal retailer who has just completed its holiday season and is temporarily flush with cash. The treasurer has identified approximately $15 million of excess balances and is trying to determine what to do with the surplus cash. Cash forecasts show that the funds will be needed in approximately 30 days to replenish inventory. Which of the following plans should the treasurer implement immediately?
Correct Answer: A
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Which of the following are KEY issues to be considered when establishing a shared service center (SSC)?
I. Selecting the location
II. Comparing an SSC structure to outsourcing of a process
III. Choosing and implementing the technology for SSC
IV. Choosing the collection bank
I. Selecting the location
II. Comparing an SSC structure to outsourcing of a process
III. Choosing and implementing the technology for SSC
IV. Choosing the collection bank
Correct Answer: B
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A variable cost to ABC Company's treasury management system would BEST be identified as:
Correct Answer: C
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Which of the following types of payment transactions requires the authorization of both the initiating and the receiving party?
Correct Answer: B
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A company is looking for a way to finance their inventory. What is the BEST funding match?
Correct Answer: B
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Disbursement float includes which of the following three float time intervals?
Correct Answer: B
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