Practice CTP Exam Online

Question 1

Amalgamated Binding Consolidators takes 20 days to convert its raw materials to finished goods, 5 days to sell it, and 15 days to collect its credit sales. What is the company’s days receivable period?

A : 5 days

B : 15 days

C : 20 days

D : 40 days

Answer: B

Question 2

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

A : Service charges

B : Average float balance

C : Earnings allowance rate

D : Money market rate

Answer: D

Question 3

All of the following are reasons to use a confirmed irrevocable letter of credit EXCEPT concern about:

A : the buyer's ability to pay.

B : the ability to receive cross-border payments.

C : foreign currency exposure.

D : the stability of the buyer's bank.

Answer: C

Question 4

Company XYZ had the following sales over the last 5 years:

Magento-Certified-Professional-Cloud-Developer

The company raised funds to invest in its operations. Considering the company’s growth, it is interested in future options that will allow it to maintain its debt level and keep debt costs low. The company is not concerned about changes to the working capital structure. Which security did the company issue?

A : Unsecured bond

B : Bond with an equity kicker

C : Zero-coupon bond

D : Convertible security

Answer: B

Question 5

A high-yield, non-investment-grade security is commonly referred to as which of the following?

A : A junk bond

B : A convertible bond

C : An industrial revenue bond

D : An equity warrant

Answer: A

Name:	Certified Treasury Professional
Exam Code:	CTP
Certification:	AFP Certification
Vendor:	AFP
Total Questions:	932
Last Updated:	Apr 24, 2024

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