Free AFP CTP Practice Test & Real Exam Questions

Three college roommates open a fast-food restaurant chain after graduation. They decide to offer a 401(k) plan to all of their 700+ employees and a defined benefit retirement plan for themselves and their six Group Vice Presidents. If the company initially funds the defined benefit plan with $10 million and is in the 32% tax bracket, what is the after-tax cost of the funding?

When evaluating a FSP during the RFP process, a company should place a high value on a FSPs financial strength when the provider:

ASC Topic 815 (FAS 133) is applicable when accounting for which of the following?

Determining that payments are made to vendors and suppliers based on credit terms is the responsibility of:

All of the following would encourage a company operating nationwide to develop multiple banking relationships EXCEPT:

Which of the following types of risk is considered an internal operational risk?

The credit risk in the settlement of a Fedwire is borne by the:

A multinational firm headquartered in Germany expects the U.S. dollar to depreciate relative to the euro in the next few weeks. To counteract this expectation, the firm will lead payments from its only subsidiary, located in New York City. What situation could the firm encounter by employing this practice?

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?

To arrive at today's projected closing cash position, a cash manager starts with:

Which cost benefit analysis technique uses the methodology to find where the present value of each project's cash inflows equals the present value of each project's outflows?

A grocery store chain would be likely to use all of the following services EXCEPT:

A corporation has a $500 million revolving line of credit whose interest rate is based on LIBOR. The board authorized the treasurer to initiate a swap transaction which has the company paying a fixed rate of interest rather than a floating rate. The treasurer entered into a swap with a notional value equal to the prior year's average outstanding balance of the revolver. The swap is also initiated for the same period as the revolver's remaining time to maturity. The counterparty for the swap transaction is, however, not a bank participating in the syndicate which had issued the revolver. The corporation's accounting team is now trying to determine the proper income recognition principals to apply to gains or losses on the swap. This is an example of what kind of hedge?

All of the following are advantages of using traditional financial ratios for analysis EXCEPT: