Free AFP CTP Practice Test & Real Exam Questions
What kind of budget forecasts the cost for investing activities?
Correct Answer: D
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Which report is MOST LIKELY to be a current-day information report?
Correct Answer: B
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In an organization with personnel limitations, which of the following strategies should be considered to mitigate cash management system risk?
Correct Answer: A
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The before-tax cost of long-term debt is 10% and the cost of equity is 12%.
The marginal tax rate is 35%. The company's weighted average cost of capital is:
The marginal tax rate is 35%. The company's weighted average cost of capital is:
Correct Answer: C
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An intern was hired by the Vice President of Accounts Payables to process the electronic payments that come through the bank. The intern is responsible for manually entering payee information into the system at each step of the process. The VP directed the intern to enter the information as fast as possible without mistakes to optimize the number of transactions that could be processed. Instead of manually entering information the VP should have utilized:
Correct Answer: B
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Company GRA has retail locations in remote areas of Montana. All banking options within the area, deemed a safe distance for making cash deposits, fail the counterparty risk assessment. Deposits would include both cash and checks. In order to achieve immediate availability of funds, what deposit method should be utilized?
Correct Answer: D
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Financial risk management requires monitoring changes in which of the following?
I. Interest rates
II. Foreign exchange rates
III. Commodity prices
IV. Cost of insurance
I. Interest rates
II. Foreign exchange rates
III. Commodity prices
IV. Cost of insurance
Correct Answer: A
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XYZ Company has incurred a financially devastating event because of a hurricane at its offshore manufacturing plant. Due to the impact on liquidity, the company may not be able to survive. What should the Treasurer have done in order to assess the risk associated with this type of event?
Correct Answer: C
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The time between receipt of a mailed payment and the deposit of the payment in the payee's account is known as:
Correct Answer: C
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A prearranged ACH payment normally includes which of the following?
I. A fixed payment amount
II. A provision for immediate availability
III. A predetermined payment date
I. A fixed payment amount
II. A provision for immediate availability
III. A predetermined payment date
Correct Answer: D
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Which of the following situations is the best example of transaction exposure?
Correct Answer: B
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A cash manager wants to convert wire payments to ACH. Which of the following would NOT be a good application for ACH?
Correct Answer: B
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A company's basic investment objectives should include all of the following EXCEPT:
Correct Answer: C
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An inverted yield curve occurs when which of the following is true?
Correct Answer: C
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