Free AFP CTP Practice Test & Real Exam Questions

A decrease in the accounts receivable from one period to the next is considered to be:

Company XYZ is aggressively expanding globally. It is evaluating four markets: Latin America, Europe, Asia and Middle East.
Latin AmericA. Risk adjusted discount ratE. 15%, Payback period=7 years, IRR=15% EuropE. Risk adjusted discount ratE. 8%, NPV=$20M Middle East: Risk adjusted discount ratE. 11%, IRR=12%, NPV=$5M AsiA. WACC. 9%, Payback=2 yrs, IRR=8% Based on the information, which two markets will company XYZ MOST LIKELY pursue?

A cash manager has determined that the break-even amount for justifying a wire transfer over an ACH for concentration of funds is $145,000. Using a wire instead of an ACH gives the company use of the funds two days earlier to make overnight investments. Based on a wire transfer cost of $10.00 and an ACH transaction cost of $0.70, what is the company's overnight investment interest rate on a 365-day year basis?

Included in the CAMELS rating system for financial institutions are all of the following EXCEPT:

Merchant MNO's sales for the day total $20,000. Fifty percent are credit cards, split between Card Red and Card Blue respectively, at 65% and 35% of the card volume. The average ticket is $50. Fees paid are 2% for Card Red and 2.5% for Card Blue and a fee of $0.05 per transaction. What are the fees that MNO will pay to the issuing banks?

Which of the following is LEAST likely to appear on an account analysis?

When a company creates future receivables and/or payables that are denominated in a currency other than its home or functional currency it is faced with:

Which of the following is a negotiable time draft?

XYZ Company is a fairly new and high growth company funded by venture capital. Which of the following performance measures is it MOST LIKELY to use?

Which of the following is an advantage of cryptocurrencies?

The Treasury Manager of a privately held company is looking to finance new equipment that has a useful life of 5 years. What type of financing would the Treasury Manager MOST LIKELY employ to finance the equipment?

A company is interested in lowering its overall banking costs, managing netting, pooling, re-invoicing, and centralizing FX exposure at headquarters. Which of the following options will accomplish this?

Company ABC wants to consolidate bank balance reporting, do daily cash positioning, and make payments from a centralized platform for multiple banks. What vehicle should the company use?

A company has a robust cash forecast process that has a 98% accuracy rate. Because of the high level of accuracy in the cash forecast, the company uses the buy-and-hold-to-maturity strategy for short-term investments. Which of the following is an advantage of using the buy-and-hold-to-maturity strategy?