Free AFP CTP Practice Test & Real Exam Questions

When will a depositor receive ledger and collected credit for a western check deposited at 2:00 P.M.
Wednesday?

Ledger Credit - Collected Credit

For a retirement plan to be qualified under ERISA, employer and employee contributions must be:

A company with a relatively poor credit rating borrows most of its funds with short maturities. They may want to change its exposure to interest rates to more correctly reflect the long-term nature of the projects it is funding. Or, they may believe that long-term interest rates are going to rise, causing it to seek protection against the impact of higher interest rates on its balance sheet. Which of the following would be a solution?

A company is expanding its investment portfolio to include external managers. All managers place trades through a company account so that detailed investment reports can be generated. What is the BEST method to adopt for accurate tracking and reporting of investment activity and to reduce the potential for fraud?

When a short-term loan is paid with a lump sum payment and the payment includes both interest and principal, the loan is often referred to as a:

If a bank has a 10% reserve requirement, a 31-day month, and an earnings credit rate of 6.5%, which of the following is the approximate level of collected balances required to support $1.00 worth of bank service charges?

A company may choose to outsource some of its cash management processes to:

A merchant has a chargeback rate of 0.03% on average daily sales of $200,000. After switching to a new merchant acquirer that is a bank, the merchant sees the rate increase to 0.05% or $10,000. The merchant's analysis reveals that the bank maintains its data warehouse in another country where the system network is routinely hacked. What act or standard is being violated?

Financial ratios may provide an inaccurate forecast of a company's performance because they are:

Capital budgeting is defined as the:

West Coast Retail Shop has experienced reduced cash availability in its bank account since a new store manager was hired. The manager is responsible for manually preparing daily bank deposits, which generally include a large number of checks, for processing at a bank branch in the same shopping mall as the store.
Which of the following should West Coast Retail Shop implement to improve the available balance in its bank account?

A company is starting a project to redesign its cash management information systems. What would be an important tool in this effort?

A company stores vendor banking data on its ERP system for the purpose of making ACH payments. A vendor emails a notice of account closure and provides updated banking information, which an employee updates and a payment is made. A few weeks later, the vendor calls asking for payment, and when told which bank account the money was sent to, informs the employee that is not their account. Which of the following controls could have prevented this fraud from occurring?

The MICR encoding on a check provides all of the following information EXCEPT: