AFP CTP Exam Practice Test Instant Access

Question 1

A company recently implemented a treasury code of conduct, which defined appropriate actions and business behaviors. The company developed policies and procedures that assigned duties to managers, and distributed the code to all treasury employees. The treasury group could have improved upon this implementation by doing which one of the following?

AHaving the code of conduct reviewed by the marketing department

BProviding training on the code to all employees

CHaving the code certified under Sarbanes-Oxley Act requirements

DIncorporating the code under its disaster recovery plan

Answer : B

Question 2

XYZ Company's cash manager is evaluating cash concentration transfer options. The company has an 8% cost of funds and $50,000 in average daily field cash receipts. The wire transfer results in the transfer of funds one day faster. Which of the following options correctly ranks the transfer choices from most cost-effective to least cost-effective?

1. Electronic depository transfer costing $1.00

2. Electronic depository transfer costing $2.50

3. Wire transfer costing $8.00

4. Wire transfer costing $15.00

A1, 2, 3, 4

B1, 3, 2, 4

C3, 1, 2, 4

D3, 4, 1, 2

Answer : C

Question 3

An organization must maintain adequate liquidity to meet:

Astrategic objectives.

Bfive year plan.

Ctransaction requirements.

Ddefined contribution plan distributions.

Answer : C

Question 4

Which of the following situations is the best example of transaction exposure?

AA U.S. headquartered firm consolidates their foreign subsidiary's financial statements into their home currency.

BA company that purchases raw materials locally and sells its products in local markets recently encountered foreign competition.

CA U.S. exporter sells merchandise to a French buyer and records a balance receivable with payment terms in euros due in three months.

DA multinational corporation uses balance sheet hedging to reduce net exposure of the parent company.

Answer : C

Question 5

A U.S. exporter has agreed to export goods to a Canadian buyer with net 30 payment terms due in Canadian dollars. What type of risk is the exporter exposed to?

AEconomic exposure

BCommodity exposure

CTransaction exposure

DTranslation exposure

Answer : C

Question 6

A multinational corporation with many FSPs requires a TMS that can display extensive and complex information in an effective manner. The corporation will be looking for a TMS with what functionality?

ABank administration

BDashboards

CData integration

DModularity

Answer : B

Question 7

Which of the following ASC X12 transactions is used to confirm the receipt and compliance of transmitted sets?

A821

B822

C835

D997

Answer : D

AFP CTP Certified Treasury Professional Exam Practice Test