Free AFP CTP Practice Test & Real Exam Questions
Components of a field banking system include which of the following?
I. Local bank
II. Concentration bank
III. Lockbox bank
I. Local bank
II. Concentration bank
III. Lockbox bank
Correct Answer: A
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A small group of investors is purchasing a company using a large amount of debt. This group is intending to sell off pieces of the acquired company to other firms that it believes can take advantage of potential synergies. What is this type of a transaction more specifically known as?
Correct Answer: A
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A large multinational company recently implemented new processes to automate its treasury operations. If these changes were the direct result of comparing the company's practices with those of other companies, the activities could be considered an example of which of the following?
I. Liquidating
II. Re-engineering
III. Benchmarking
IV. Forecasting
I. Liquidating
II. Re-engineering
III. Benchmarking
IV. Forecasting
Correct Answer: D
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A company has been in business for ten years. The company uses simple moving averages to generate forecasts. The CFO noticed that current forecasts are poor predictors of cash flows. The CFO recommends improving accuracy by using correlation and regression analysis. Which of the following are necessary for the development of a robust regression analysis model?
Correct Answer: B
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Which of the following is a common approach to negotiating EDI payment terms versus paper payment terms?
Correct Answer: C
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Which one of the following ties a user's private key to a user's public key?
Correct Answer: D
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On June 1, a manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash manager was unable to process the following payments: $25,000 to the p-card issuer, $125,000 for weekly payroll, $500,000 for a bond interest payment, $260,000 for the weekly vendor payments and $50,000 for the monthly utilities. The receivables were deposited at the bank; however, the cash manager does not have a way to confirm the amounts. The suppliers are threatening to stop shipments due to the delay in payment and the loss of supplier shipments threatens the company's just-in-time production. What did the manufacturing company trigger as a result of the system failure?
Correct Answer: A
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Which of the following is NOT a drawback to using ROI as a performance measure?
Correct Answer: C
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Which of the following statements is true about lockbox network systems?
Correct Answer: B
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ABC Company offers a discount of 2/10, net 30 to its customers. ABC factored its accounts receivables with an outside vendor, under a "with recourse" arrangement. What impact might this have on the company?
Correct Answer: C
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The treasury objectives of Company ABC are to ensure liquidity and produce a profit. The board of directors is allowing the treasury department to actively take a position on the direction of the market to make a profit.
Which strategy is the company employing?
Which strategy is the company employing?
Correct Answer: D
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A new retail chain has decided to offer 3 payment methods: cash, cards and checks. It was determined that card payments would be the biggest sales driver and projects have been scheduled accordingly. To be in line with this strategy, which of the following should be the priority?
Correct Answer: D
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When estimating the cost of capital, which of the following financial resources would probably NOT be included in the cost of capital calculation?
Correct Answer: C
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