Practice CTP Exam Online

Question 1

Account analysis statements should be examined for which of the following reasons?

I. To verify volumes processed

II. To determine daily cash shortages

III. To verify the accuracy of bank service charges

IV. To ensure that company-initiated transactions have occurred

A : I and IV only

B : I and III only

C : II and III only

D : II and IV only

Answer: B

Question 2

If a company has $126 million in debt at an average cost of 7% and $234 million in equity at a cost of 11%, what is its weighted average cost of capital, assuming a marginal tax rate of 35% and a risk-adjusted rate of 13%?

A : 8.7%

B : 9.6%

C : 10.0%

D : 10.9%

Answer: A

Question 3

Which of the following would MOST LIKELY cause a decrease in a company's deposited checks availability?

A : The depository bank institutes an earlier deposit deadline.

B : The Federal Reserve implements same-day presentment

C : The company's lockbox bank implements weekend processing.

D : The company encodes its own checks prior to deposit.

Answer: A

Question 4

Measurement of a company's liquidity includes the calculation of all of the following EXCEPT:

A : current ratio.

B : cash turnover.

C : return on equity.

D : quick ratio

Answer: C

Question 5

Netting is used by which of the following as a cross-border payment technique?

A : European giro providers

B : Foreign subsidiaries of a company

C : Counterparties in a letter of credit transaction

D : TARGET participants

Answer: B

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

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