Free AFP CTP Practice Test & Real Exam Questions

An auto manufacturer experienced a decline in sales, an increase in inventory, and an increase in labor costs over the past two months. With all else being equal, what is the MOST LIKELY impact to the company's balance sheet?

The Treasury Analyst at an investment firm has entered the company into a repurchase agreement with a counterparty at the direction of the Treasury Manager. The compliance office has determined that the trade was done in violation of the company investment policy. The Treasury Manager has the power to approve the execution of trades; however, the Treasury Analyst was not a designated trader on behalf of the firm. Which area of the investment policy was violated by the Treasury Analyst?

The treasurer at a U.S.-based manufacturing plant is developing a cash flow forecast for the next four weeks.
The treasurer has set a minimum cash balance target for the plant of $75,000 and the cash position in the beginning of week 1 is $28,000. Using the cash receipts and disbursements projections provided in the data set, what is the plant's net investable balance at the end of week 4?

Given the above information,

if the risk manager adds a tank at its second facility, what loss control technique is being used?

Which of the following is NOT characteristic of commercial paper with a term of less than 270 days?

A company is evaluating a project. What is the appropriate discount rate that it should use if its marginal tax rate is 34%, its capital structure is 40% common equity, and 60% debt. Its cost of equity is 10%, and its average cost of debt is 4%?

An olive oil producer in Macedonia is arranging for shipment of its product to an international distributor. To support this activity, the company arranges for export financing because:

ABC Company offers trade terms of 2/10 NET 30. For several reasons, ABC has decided to eliminate the requirement for a letter of credit from one of its customers. If ABC puts the customer on open book credit, what is the MOST LIKELY outcome?

Which of the following types of payments would NOT be included in cash flow forecasting?

A nationwide discount retailer is re-evaluating financing methods since the most-popular and most-expensive electronics "must-have" item for this year is set to ship from factories in China. Which of the following credit facilities would be MOST effective for the retailer to use?

Company XYZ uses exponential smoothing to forecast its daily lockbox receipts. With the help of a statistical computer program, the company has determined that the smoothing constant is 0.35.

Using the data in the table, what is the exponential smoothing forecast for Day 7 (rounded to the nearest whole $)?

A company may choose to use a derivative to reduce risk on which of the following types of exposure?
I. Currency
II. Interest rate
III. Commodity price

Under an operating lease, possible benefits to the lessee include which of the following?
I. It requires no initial capital outlay.
II. It can be structured as an off-balance-sheet item.
III. It can offer tax advantages.

Capital budgeting decisions are most commonly evaluated in terms of: