Free AFP CTP Practice Test & Real Exam Questions
Which of the following is MOST LIKELY to have a significant impact on the financial condition of an organization?
Correct Answer: D
Vote an answer
A treasurer is evaluating a project that will cost $1,000 but will return cash flows of $225, $225, $300, $750, and $750 in years 1 through 5, respectively. The company's interest rate on its debt is 10% and its marginal cost of capital is 15%. What is the Net Present Value (NPV) of this project?
Correct Answer: C
Vote an answer
Regarding dividends, on which of the following dates would a company's current assets be reduced?
Correct Answer: D
Vote an answer
Which of the following types of risk would an investor who does NOT receive payments on a security under the original terms be subject to?
Correct Answer: C
Vote an answer
A commercial paper issuer who repays investors earlier in the day than it receives funds from new investors often creates which of the following?
Correct Answer: D
Vote an answer
According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?
Correct Answer: A
Vote an answer
All of the following are discounted instruments EXCEPT:
Correct Answer: B
Vote an answer
A company enters into a cash flow hedge to offset fluctuations in the value of foreign currency transactions occurring in two years. How should the company record the gains and/or losses on the cash flow hedge in the current year?
Correct Answer: A
Vote an answer
Under the strict cash basis of accounting, revenue is recorded when:
Correct Answer: B
Vote an answer
An employee earning $80,000 per year decides to begin contributing to his company's 401(k) plan effective January 1st. Assuming he is in the 25% tax bracket, contributes 15% of his pay into the plan each month and receives a company match of $0.50 for every dollar he contributes, what is his taxable compensation that year?
Correct Answer: B
Vote an answer
A company uses the maturity matching strategy. Fluctuating current assets have increased. What is the likely impact to its line of credit?
Correct Answer: D
Vote an answer
Each of the following statements is true of both defined benefit plans and defined contribution plans EXCEPT:
Correct Answer: C
Vote an answer
The yield on any short-term investment instrument is a function of the maturity or holding period, the amount paid and:
Correct Answer: A
Vote an answer
Company XYZ's government relations team has done a poor job in maintaining and nurturing its relationship with the local government. Because of new business ventures it is pursuing, the company needs a method that will help it monitor and collect international accounts receivables between subsidiaries. What technique is more suited given its situation?
Correct Answer: A
Vote an answer
