Free AFP CTP Practice Test & Real Exam Questions
A privately held company is planning to issue an IPO. If the company decides to do so, which of the following will MOST LIKELY result?
Correct Answer: A
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Which of the following is an important component of corporate governance?
Correct Answer: B
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Which of the following business practices does NOT comply with the Uniform Commercial Code?
Correct Answer: C
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The PRIMARY difference between money market instruments and capital market instruments is that capital market instruments are securities that are:
Correct Answer: B
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Treasury management systems and ERP systems allow companies to do all of the following EXCEPT:
Correct Answer: D
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Which of the following is generally NOT a benefit of financial risk management?
Correct Answer: B
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A high-yield, non-investment-grade security is commonly referred to as which of the following?
Correct Answer: B
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A company receives a $5,000 invoice with terms of 1/15, net 45. What is the annualized cost of not taking the
1% discount on day 15 and instead paying the invoice on day 45?
1% discount on day 15 and instead paying the invoice on day 45?
Correct Answer: D
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Loss exposures related to treasury management may include which of the following?
Correct Answer: B
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The board of directors announces an increase in its dividend from $0.11/share to $0.15/share. Over the next two quarters, management notices that its investor base has shifted to include a large percentage of pension funds and endowment funds. This is the result of:
Correct Answer: B
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Kahuna Boards Co. has just experienced a very profitable year and wants to share the success with its shareholders. In order to pay dividends, a sequence of events must occur. Which of the following chronological sequence of events is correct?
1. Stock is sold without the upcoming dividend attached.
2. Dividend is paid.
3. Board of directors announces the dividend.
4. Holders of record are specified.
1. Stock is sold without the upcoming dividend attached.
2. Dividend is paid.
3. Board of directors announces the dividend.
4. Holders of record are specified.
Correct Answer: A
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Which of the following payment instruments can provide predictable collection float?
I. Wire transfer
II. Check
III. ACH
IV. Cash
I. Wire transfer
II. Check
III. ACH
IV. Cash
Correct Answer: B
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An analyst for a landscaping company wants to adjust her cash-flow forecast to account for the seasonality of outflows. How can this be accomplished?
Correct Answer: D
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A sinking fund is primarily used for which of the following purposes?
Correct Answer: C
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