Jan-2022 AFP CTP Certification Real 2022 Mock Exam
CTP Exam Questions and Valid PMP Dumps PDF
NEW QUESTION 137
A banker's acceptance can be described as all of the following EXCEPT:
- A. a sight draft.
- B. a discount instrument.
- C. an easily marketable instrument.
- D. a liability of the accepting bank.
Answer: A
NEW QUESTION 138
Cash management services commonly used outside the United States include which of the following?
I. Interest-bearing deposit accounts
II. Controlled disbursement systems
III.
Pooling of bank accounts
- A. II and III only
- B. I, II, and III
- C. I and II only
- D. I and III only
Answer: D
NEW QUESTION 139
What does a company with a restrictive current asset investment strategy typically have?
- A. Low tax liabilities
- B. High inventory levels
- C. High financing costs
- D. Low accounts receivable balances
Answer: D
NEW QUESTION 140
The assistant treasurer of a company uses variance analysis comparing actual cash flows with projected cash flows and finds actual is less than forecasted. Which of the following would cause this variance?
- A. Capital budget forecast
- B. Weighted average cost of capital
- C. Delayed accounts receivable collection
- D. Pro forma income statement
Answer: C
NEW QUESTION 141
A grocery store chain would be likely to use all of the following services EXCEPT:
- A. cash vault.
- B. debit card.
- C. armored car.
- D. retail lockbox.
Answer: D
NEW QUESTION 142
A company is filing for bankruptcy protection and is concerned about the welfare of its sizeable retiree population. Under ERISA, it is obligated to perform which of the following actions regarding its defined benefit plan?
- A. File a 5500 report (bankruptcy amendment) with the DOL.
- B. Record a distress termination with the PBG
- C. Use proceeds from asset sales to fund the plan liability.
- D. Convert the plan to a portable, hybrid vehicle.
Answer: B
NEW QUESTION 143
Which of the following contributes MOST to the marketability of a security?
- A. A large, active secondary market
- B. An investment-grade rating
- C. An irrevocable letter of credit guarantee
- D. A return at or above the yield curve
Answer: A
NEW QUESTION 144
Capital budgeting decisions are most commonly evaluated in terms of:
- A. earnings allowance rate.
- B. yield to maturity.
- C. internal rate of return.
- D. financial leverage.
Answer: C
NEW QUESTION 145
Which of the following is an example of off-balance-sheet financing?
- A. Capital lease
- B. Zero-coupon bond
- C. Commercial paper
- D. Factoring receivables
Answer: D
NEW QUESTION 146
Cash management services commonly used outside the United States include which of the following?
I) Interest-bearing deposit accounts
II) Controlled disbursement systems
III) Pooling of bank accounts
- A. II and III only
- B. I, II, and III
- C. I and II only
- D. I and III only
Answer: D
NEW QUESTION 147
On a statement of cash flow, which of the following items are considered sources of cash?
I) Increase in short-term investments
II) Net income
III) Increase in accounts payable
IV) Decrease in long-term debt
- A. II and IV only
- B. II and III only
- C. I, III, and IV only
- D. I and III only
Answer: B
NEW QUESTION 148
If the Federal Reserve wanted to stimulate a sluggish economy, it could do so by:
- A. increasing margin requirements.
- B. buying U.S. government securities in the open market.
- C. selling U.S. government securities in the open market.
- D. increasing reserve requirements.
Answer: B
NEW QUESTION 149
A properly designed concentration system will potentially achieve which of the following results?
I) Increased authority to field offices
II) Increased investment income
III) Improved ability to take discounts
IV) Reduced dependence on third-party concentration vendors
- A. II and III only
- B. II, III, and IV only
- C. IV only
- D. I and II only
Answer: A
NEW QUESTION 150
A portfolio manager wishes to make a short-term investment. His investment policy requires that short-term investments be low risk and secured, have a fixed interest rate and be highly liquid/redeemable prior to maturity. Which of the following should the manager choose?
- A. Asset-backed commercial paper
- B. Bank obligations
- C. Commercial paper
- D. Government treasury bills
Answer: A
NEW QUESTION 151
Which of the following can be used for monitoring accounts receivables?
I) Aging schedule
II) Credit terms
III) Days' sales outstanding
IV) Receivables balance pattern
- A. II, III, and IV only
- B. I and II only
- C. I, III, and IV only
- D. I and IV only
Answer: C
NEW QUESTION 152
Company Sales Figures:
--------
10% of sales collected in the current month of the sale
45% of sales collected in the month after the sale
30% of sales collected two months after the sale
15% of sales collected three months after the sale
January Sales $300,000
February Sales $250,000
March Sales $400,000
April Sales $450,000
Based on the information above, what is the estimate for the company's April cash flows?
- A. $345,000
- B. $330,000
- C. $1,055,000
- D. $1,070,000
Answer: A
NEW QUESTION 153
The Sarbanes-Oxley Act of 2002:
- A. created the Financial Accounting Standards Board.
- B. created the International Accounting Standards Convergence Board.
- C. created the Public and Private Corporate Governance Board.
- D. created the Public Company Accounting Oversight Board.
Answer: D
NEW QUESTION 154
An investment is purchased for $10,000.00 that offers compounding of the first year's interest and it matures at the end of year two. If the value at maturity is $11,664.00, what is the rate of return on the investment?
- A. 7%
- B. 10%
- C. 9%
- D. 8%
Answer: D
NEW QUESTION 155
A company has a line of credit and a bond trustee agreement with a bank. To prevent a decline in the company's bond rating from having a negative impact on the company's line of credit, the bank should have which of the following in place?
- A. Notional barrier
- B. Confidentiality agreement
- C. Code of conduct
- D. Risk profile
Answer: A
NEW QUESTION 156
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