Quality CTP PDF Dumps - CTP Exam Questions
Most UptoDate AFP CTP Exam Dumps PDF 2022
NEW QUESTION 429
A company has asked its marketing, payroll and sales teams to collaborate in finding a solution that could augment its customer base, reduce payroll cost and increase sales. The solution has to be market ready. Which of the following will serve all 3 purposes?
- A. Ghost cards
- B. Stored value card
- C. Smart cards
- D. PIN based cards
Answer: B
NEW QUESTION 430
A daily short-term forecast and variance analysis for LMN, Inc. is updated with relevant trends and actual data every Monday. Upon review, the Treasurer assessed that sales were higher than forecasted, inventory was up and yields being earned on excess cash were lower. The MOST important reason for this cash forecast process is:
- A. capital budgeting.
- B. liquidity management.
- C. managing costs.
- D. financial control.
Answer: B
NEW QUESTION 431
A bank uses all of the following to determine whether a company's balances are sufficient to compensate for services EXCEPT:
- A. reserve requirement.
- B. collected balances.
- C. ledger balances.
- D. earnings credit rates.
Answer: C
NEW QUESTION 432
A sinking fund is primarily used for which of the following purposes?
- A. To provide interest distributions to bondholders
- B. To ensure that adequate funds are available to redeem the bond issue
- C. To provide periodic principal reductions over the life of the bond
- D. To pay bond administration costs
Answer: B
NEW QUESTION 433
What is this firm's residual income?
Revenues: $110,000
Expenses (including COGS and all taxes): $87,000
Internal rate of return: 8.5%
Capital Investment: $55,000
ROI: 8.0%
Cost of capital: 11%
- A. $18,325
- B. $18,600
- C. $16,500
- D. $16,950
Answer: D
NEW QUESTION 434
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. A retail lockbox with multiple deposit points
- C. Over-the-counter collections in numerous locations; deposits to field banks
- D. A company processing center; deposits to nearby bank(s)
Answer: A
NEW QUESTION 435
A company transfers funds from its remote accounts by ACH with a one-day settlement and is notified of a same-day credit of $100,000 in one of its accounts. A wire transfer costs $27.75 incrementally. Assuming a 360-day year, which of the following is the minimum rate of interest that must be earned on these funds to justify the cost of a wire transfer?
- A. 10.00%
- B. 10.50%
- C. 8.00%
- D. 9.25%
Answer: A
NEW QUESTION 436
Examples of traditional factors used in making a credit decision include which of the following?
I) Capacity
II) Capital
III) Compliance
IV) Character
- A. I, II, III, and IV
- B. I, II, and IV only
- C. I and III only
- D. IV only
Answer: B
NEW QUESTION 437
Without regard to costs, which of the following concentration mechanisms maximizes investment income in a multi-bank environment?
- A. Zero balance account
- B. ACH
- C. Wire transfer
- D. DTC
Answer: C
NEW QUESTION 438
Company GRA has retail locations in remote areas of Montana. All banking options within the area, deemed a safe distance for making cash deposits, fail the counterparty risk assessment. Deposits would include both cash and checks. In order to achieve immediate availability of funds, what deposit method should be utilized?
- A. Virtual vault services
- B. Remote deposit capture
- C. Field deposit systems
- D. Deposit concentration services
Answer: A
NEW QUESTION 439
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. II and IV only
- B. II and III only
- C. I and III only
- D. I and IV only
Answer: C
NEW QUESTION 440
A wholesale lockbox system does which of the following?
- A. Provides information about invoices
- B. Requires standard scannable documents
- C. Relies on high speed automation
- D. Processes small dollar remittances
Answer: A
NEW QUESTION 441
The mix of long-term debt and equity refers to a company's:
- A. WACC.
- B. capital structure.
- C. current ratio.
- D. financial leverage.
Answer: B
NEW QUESTION 442
A treasury manager expects the price of a commodity to be highly volatile between the time of option purchase and exercise. Which option style would provide the greatest flexibility?
- A. Cayman Style
- B. Bermuda Style
- C. European Style
- D. American Style
Answer: D
Explanation:
Topic 3, Volume C
NEW QUESTION 443
Which of the following is a purpose of the Check 21 Act?
- A. Improve check imaging and archiving
- B. Foster innovation in the ACH payment system
- C. Facilitate check truncation
- D. Grant legal status for digital signatures
Answer: C
NEW QUESTION 444
MCA, Inc. upgraded the Treasury workstation that had been in place for two years and used data from that 24-month period to develop a new short-term forecast. A trend factor was applied to controlled disbursements of 97% on a month-by-month basis and the variance to actual disbursements is less than 1%. Which of the following model validation techniques was utilized?
- A. Documentation validation
- B. Ongoing validation
- C. In-sample validation
- D. Comparison validation
Answer: C
NEW QUESTION 445
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