[Nov 11, 2021] New Updated CTP Exam Questions 2021
Updated Free AFP CTP Test Engine Questions with 932 Q&As
NEW QUESTION 483
A wholesale lockbox system does which of the following?
- A. Relies on high speed automation
- B. Provides information about invoices
- C. Processes small dollar remittances
- D. Requires standard scannable documents
Answer: B
NEW QUESTION 484
Due to a loss of proprietary information held for clients, ABC Company has been named in a billion dollar lawsuit. It was determined that the loss of information was due to a breach in its computer system firewalls by outside parties. When the lawsuit became public, the company experienced a steep drop in its stock price. This scenario is an example of what kind of risk?
- A. Internal technology
- B. Compliance
- C. External theft/fraud
- D. Market
Answer: C
NEW QUESTION 485
A town has $25 million excess funds to invest long term. The town's investment policy requires it have full FDIC coverage on all investments. The town is willing to do its own due diligence on the financial institutions that they invest in, but would prefer to have one statement. Which of the following investment options meets its requirements?
- A. Certificate of Deposit Account Registry Service
- B. Separately managed diversified portfolio
- C. Jumbo Certificates of Deposit
- D. Institutional Money Market Account
Answer: A
NEW QUESTION 486
A lender is evaluating the creditworthiness of a company that has high levels of operating leverage. In determining the debt capacity of the company, the bank would MOST LIKELY prefer
a:
- A. low times interest earned ratio.
- B. low long-term debt to capital ratio.
- C. high debt to tangible net worth ratio.
- D. high total liabilities to total assets ratio.
Answer: B
NEW QUESTION 487
Under a loan agreement, which of the following could be an event of default?
I) Nonpayment of interest when due
II) A material adverse change in the condition of the borrower
III) A debt-to-equity ratio above the limit specified
IV) Shortening the cure period by half
- A. I, II, and III only
- B. I and II only
- C. II and III only
- D. I and IV only
Answer: A
NEW QUESTION 488
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
- A. I and II
- B. I, II and III
- C. I and III
- D. II and III
Answer: C
NEW QUESTION 489
The U.S. government agency that administers and enforces trade sanctions against targeted foreign countries is the:
- A. Foreign Corrupt Practices Office.
- B. Office of Foreign Assets Control.
- C. Federal Trade Commission.
- D. Department of Justice.
Answer: B
NEW QUESTION 490
A company has decided to manage its short-term investment portfolio in-house. It is looking for enhanced capital gains as well as the ability to sell the instruments on the secondary market at a premium. The investment manager has forecasted the interest rates shown below:
Which investment strategy should be employed by the company?
- A. Total-return strategy
- B. Tax-based strategy
- C. Matching strategy
- D. Passive strategy
Answer: A
NEW QUESTION 491
The controller is developing a financial plan that includes an operating budget and a financial budget. Which of the following statements is true?
- A. The operating budget is developed to determine the staffing level needed for operations.
- B. The financial budget is used to determine the operating activity level the company can support.
- C. The two budgets do not have any impact on each other.
- D. The financial budget is impacted by the company's sources and uses of cash.
Answer: D
NEW QUESTION 492
The year-end income statement and balance sheet accounts for a company as of December 31, Year 1 are shown in the Exhibit.
If no changes occurred in the current asset and current liability account balances from the beginning of the period, except for cash, what was the net cash flow from operations for Year 1?
- A. $400,000
- B. $350,000
- C. $390,000
- D. $365,000
Answer: A
NEW QUESTION 493
QRT Corporation uses exponential smoothing in its cash flow forecasting model. Five days are used to calculate the moving average forecast.
If the value of the smoothing constant is .60, what is the exponential smoothing forecast for day 7?
- A. $2,000,000
- B. $2,052,000
- C. $2,400,000
- D. $2,060,000
Answer: B
NEW QUESTION 494
All of the following items may be found on an income statement EXCEPT:
- A. interest expense.
- B. cost of goods sold.
- C. taxes.
- D. prepaid expenses.
Answer: D
NEW QUESTION 495
What activity should the Treasurer be most interested in if core treasury functions were to be compared within the industry or cross-industry for the purpose of identifying "best practices"?
- A. Six Sigma
- B. Re-engineering
- C. Outsourcing
- D. Benchmarking
Answer: D
NEW QUESTION 496
Based on the following information, how much money will XYZ Company owe the bank for monthly service charges after the earnings credit is applied?
Average Ledger Balance$500,000 Deposit Float$10,000 Reserve Requirement10% Earnings Credit Rate5% Monthly Service Charges$5,000 Days in month30
- A. $68.49
- B. $561.64
- C. $436.99
- D. $0
Answer: D
NEW QUESTION 497
In most countries other than the United States, which of the following is used to compensate banks for services provided?
- A. Value dating
- B. Automatic overdraft services
- C. Bilateral netting
- D. Giro systems
Answer: A
NEW QUESTION 498
When a paper check is converted to an electronic form:
- A. the payment becomes irrevocable and unconditional.
- B. it falls under the rules of Regulation E.
- C. it retains its status as a check.
- D. the source document is always returned to the originator.
Answer: B
NEW QUESTION 499
LLZ Company manufacturers metal detectors in California at a cost of $9 per unit. The most expensive component to make is the sensor which goes in the finished product. The cost is $5 per sensor. Last month LLZ acquired a company in Mexico that makes the sensors for $1 per sensor. LLZ plans to move all sensor manufacturing operations to the factory in Mexico. What is the movement of this cost saving process called?
- A. Offshoring
- B. Reengineering
- C. Rationalizing
- D. Outsourcing
Answer: A
NEW QUESTION 500
A company plans to issue additional equity within the next 12 months but needs to issue debt at a low interest rate now. Which of the following instruments would BEST meet this objective?
- A. Private placement issue
- B. Convertible bonds
- C. Preferred stock
- D. Subordinated debentures
Answer: B
NEW QUESTION 501
A cash manager invests in Treasury bills for which of the following reasons?
- A. They offer the highest yield for overnight investing.
- B. They are extremely liquid.
- C. There is no price risk.
- D. The interest earned is exempt from federal taxes.
Answer: B
NEW QUESTION 502
A manufacturing company selling engines and other mechanical equipment, with invoices averaging $15,000, would use which of the following systems?
- A. A wholesale lockbox with multiple deposit points
- B. Over-the-counter collections in numerous locations; deposits to field banks
- C. A company processing center; deposits to nearby bank(s)
- D. A retail lockbox with multiple deposit points
Answer: A
NEW QUESTION 503
A company that has facilities in different states and wants to control funding and facilitate check cashing would use which of the following?
- A. Bank cashier's checks
- B. Multiple drawee checks
- C. Controlled disbursements
- D. Staggered funding
Answer: B
NEW QUESTION 504
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