Free AFP CTP Practice Test & Real Exam Questions

XYZ Corporation is presently a short-term borrower and uses a revolving line of credit with an interest rate of
7%. The Treasurer would like to reduce interest expense and increase liquidity without renegotiating the line of credit. Which of the following projects should the Treasurer support in order to achieve this objective as quickly as possible?

Which of the following correctly describes pooling as practiced in the European cash management environment?

During a company's cash flow analysis review it discovers that for every 10 new customers it gains, there is an increase of 2% in its float costs associated with the payment methods it offers. If the company pursues faster collection methods for payments, resulting in greater availability of surplus cash with a correlating decrease in the need to issue commercial paper, what risk will the company mitigate?

Which of the following should be considered in the design of a collection system for a supermarket or retail store that does not offer proprietary credit cards?
I. Coin and currency handling
II. Debit card acceptance
III. Retail lockbox
IV. Third-party credit cards

ABC Company is an energy-holding company which owns a number of regulated power utilities that have monopolies in different regions. The majority of the holding company's income is realized from investment portfolios. The company has done well and is going to report its overall performance to the public. What performance evaluation processes should management use to measure portfolio performance?

Compared to debt, which of the following statements is true about a company issuing equity?

XYZ Corporation uses ABC Bank for their lending and treasury management. In addition, the bank serves as bond trustee for XYZ Corp. If XYZ Corp. becomes distressed, this relationship could create a conflict of interest for the financial institution. What barrier prevents a financial institution from sharing confidential information between divisions?

Company XYZ is now required to make electronic payments by its suppliers. To prevent an increase in costs, the company shoulD.

A large, nation-wide, retailer of plumbing fixtures is considering implementing ACH technology to improve its accounts receivable processing. Which of the following pre-authorized ACH transactions can the company use for this application?

The main objective of a company's international cash management function is to:

Components of a field banking system include which of the following?
I. Local bank
II. Concentration bank
III. Lockbox bank

ABC Industries, a Canadian company, is in the process of acquiring a company in Europe for EUR100 million. The company has entered into a forward contract to lock in the purchase price and sell CAD and buy EUR on May 30th. Due to legalities, management now expects to finalize the acquisition on July 30th. The treasury manager of the company is MOST LIKELY to recommend which of the following to unwind the forward contract on May 30th?

The executive management of a utility company would like to determine if it would be more cost effective to hire a third-party provider to handle its bill processing functions, which are currently internally operated.
What formal selection method should the company use to obtain proposed solutions and detailed pricing from potential vendors?

Company ABC is experiencing an increase in bank fees due to its new international customers paying by check. Nearly 15% of all deposited items are international checks. Twenty percent of the company's checks have 1 day of float. Sixty-five percent of the company's checks are on-us items. The company has $300,000 of deposits each day. The company's deposits consist of both cash and checks, split evenly. On a typical day, how much of the deposit will be available immediately?