CTP Exam Questions

- (Topic 1) In evaluating alternative capital investments, a company should consider qualitative factors such as:

- (Topic 1) When a project has an initial cash outflow with cash inflows in subsequent years, what decision model is most applicable to use to evaluate the adequacy of the project?

- (Topic 1) A company plans to issue additional equity within the next 12 months but needs to issue debt at a low interest rate now. Which of the following instruments would BEST m...

- (Topic 1) Which of the following BEST describes an advantage of a company going public?

- (Topic 1) A public corporation may value a defined contribution plan highly because it:

- (Topic 1) The right of stockholders to purchase, on a pro-rata basis, any new shares issued by the company is referred to as:

- (Topic 1) A U.S. exporter sells goods to a foreign buyer in U.S. dollars and wants to guarantee that payment is made by the buyer. The exporter would MOST LIKELY require a(n):

- (Topic 1) A company is starting a project to redesign its cash management information systems. What would be an important tool in this effort?

- (Topic 1) Which of the following is NOT a drawback to using ROI as a performance measure?

- (Topic 1) The Governmental Accounting Standards Board (GASB) is the authoritative standard- setting body for which of the following?

- (Topic 1) ASC Topic 815 (FAS 133) is applicable when accounting for which of the following?

- (Topic 1) Kahuna Boards Co. has just experienced a very profitable year and wants to share the success with its shareholders. In order to pay dividends, a sequence of events must...

- (Topic 1) Company XYZ has determined that its weighted average cost of capital is 12.5%. The capital structure of the company is made up of 75% equity and 25% debt. The before-ta...

- (Topic 1) Which of the following is subject to translation exposure?

- (Topic 1) A cash manager has determined that the break-even amount for justifying a wire transfer over an ACH for concentration of funds is $145,000. Using a wire instead of an A...

- (Topic 1) Assume the cost of an ACH transaction is $0.80, the charges for a wire transfer are $30.00, the monthly account maintenance fee is $10.00, and the company earns interes...

- (Topic 1) A company's capital structure includes $800,000,000 in total capital, of which $200,000,000 comes from debt. The firm's after-tax cost of debt is 6%, and its cost of eq...

- (Topic 1) Future treasury operations will be affected MOST significantly by consolidation of which of the following?

- (Topic 1) A public company's risk profile is currently in balance. The management's mission statement is to minimize stock devaluation. However, it is forecasting a need for work...

- (Topic 1) The Federal Reserve can increase the money supply by:

- (Topic 1) From a buyer's perspective, which of the following types of float would be eliminated if checks were replaced by electronic payment methods?

- (Topic 1) In developing an operating budget, the first and MOST critical step is?

- (Topic 1) What is the PRIMARY issue that management needs to consider when determining capital structure?

- (Topic 1) A company is based in the United States and has an operating subsidiary in Germany. With a stable U.S. dollar and a depreciating euro, the company's cash manager may el...

- (Topic 1) Company XYZ is now required to make electronic payments by its suppliers. To prevent an increase in costs, the company shoulD.

- (Topic 1) The fixed costs to manufacture widgets are estimated to be $54,000. The benefit (sales) of a widget is estimated to be $6.78 per unit, and the variable costs are estima...

- (Topic 1) Which of the following trade payment methods virtually eliminates the seller's credit risk?

- (Topic 1) At the end of the year, ABC Company's actual revenue is $85,000,000 versus budget revenue of $90,000,000. Actual operating expenses are $20,000,000 versus budget operat...

- (Topic 1) On the basis of the following exchange rates, which of the following currency amounts has the greatest value in U.S. dollars?

- (Topic 1) 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'...

- (Topic 1) On which exchange is a company's stock traded on the over-the-counter market?

- (Topic 1) Regarding dividends, on which of the following dates would a company's current assets be reduced?

- (Topic 1) Which of the following are important uses of variance analysis in comparing actual cash flows with projected cash flows?

- (Topic 1) Which of the following is MOST LIKELY to have a significant impact on the financial condition of an organization?

- (Topic 1) The treasury management department of a company hires a consulting firm to provide This is an example of which practice?

- (Topic 1) A real estate development company has excess cash that it would like to invest in one of its properties: Property A has shown an ROI of 40%, a residual income of $25,67...

- (Topic 1) Financing decisions in a budget are used to construct all of the following pro forma financial statement components EXCEPT:

- (Topic 1) A company with constant earnings and excess cash is considering a significant stock repurchase plan. Which of the following is MOST LIKELY to occur?

- (Topic 1) What kind of budget forecasts the cost for investing activities?

- (Topic 1) Which of the following is subject to transaction exposure?

- (Topic 1) An investor concerned about taxes on dividend distributions will MOST LIKELY purchase stock on which of the following dates?

- (Topic 1) A put option on a company's stock has an exercise price of $20. On the delivery date, the stock is trading at $24 per share. What should the investor who has paid $2 fo...

- (Topic 1) The MOST common way that companies structure their treasury operations is as a:

- (Topic 1) In terms of capital structure, lease financing normally has the same effect as:

- (Topic 1) A foreign company could raise capital in the United States using an:

- (Topic 1) An arrangement in which a borrower makes periodic payments to a separate custodial account that is used to repay debt is known as a:

- (Topic 1) Company A is a large public company with annual revenue of $1.2 billion and high fixed costs. Its stock is listed on the New York Stock Exchange. Company B is a mid-siz...

- (Topic 1) A Chicago meat processor is concerned about the volatility of pork belly prices. Which of the following derivative products would be used to fix these prices within a g...

- (Topic 1) Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features?

- (Topic 1) A French company conducts business strictly within the euro zone (the EMU). Which type of risk is of LEAST concern?