CTP Exam Questions

- (Topic 5) A company purchases a machine tool with an expected life of 3 years. Under the accrual accounting method, the equipment would be treated in which of the following ways?

- (Topic 5) Which of the following can be exercised only on the expiration date?

- (Topic 5) With the advent of the euro, many U.S. companies have seen a reduction in their number of foreign currency transactions. As a result, these U.S. companies have benefite...

- (Topic 5) A company has a $300,000 credit line of which $200,000 was the average amount outstanding for the year. The terms of the loan include a 1/2 of 1% commitment fee on the...

- (Topic 5) Under a loan agreement, which of the following could be an event of default?

- (Topic 5) Company XYZ uses exponential smoothing to forecast its daily lockbox receipts. With the help of a statistical computer program, the company has determined that the smoo...

- (Topic 5) A manufacturing company is working to improve its cash conversion cycle. Factory production has increased over the last year to increase inventory levels. They have an...

- (Topic 5) The treasury analyst at RST Corporation has been asked to forecast cash levels for the company's year-end balance sheet. The analyst has been given the following inform...

- (Topic 5) Which of the following will directly increase a company's cost in a fee-only bank relationship?

- (Topic 5) Trade terms are renegotiated under e-commerce in order to:

- (Topic 5) Company XYZ sends an ACH debit file valued at $300,000 with an average item value of $1,000. The file settlement date is March 10. The file contains no duplicate items...

- (Topic 5) XYZ Company is considering the purchase of a security that generates a tax equivalent yield of 10% and a tax exempt yield of 7.1%. What is XYZ's marginal investment tax...

- (Topic 5) Which of the following business practices does NOT comply with the Uniform Commercial Code?

- (Topic 5) Which of the following ACH formats is commonly used for consumer payments such as deposits of payroll?

- (Topic 5) A company is considering expanding to a three-site lockbox system from its current two- site system and has collected the following data: The average collection float i...

- (Topic 5) Which of the following ways of financing accounts receivable requires a company to relinquish control of the type of customer to which it sells?

- (Topic 5) LST Company is a publicly traded company with $120 million in sales. Historically, LST does not extend credit to customers beyond net 45 terms. To help promote sale of...

- (Topic 5) All of the following are reasons to use a confirmed irrevocable letter of credit EXCEPT concern about:

- (Topic 5) Which of the following is a common approach to negotiating EDI payment terms versus paper payment terms?

- (Topic 5) A new retail chain has decided to offer 3 payment methods: cash, cards and checks. It was determined that card payments would be the biggest sales driver and projects h...

- (Topic 5) Which of the following statements is (are) true about non-repetitive wires?

- (Topic 5) A merchant presents 2 different batches of credit card transactions for processing, each batch has the same dollar value and number of transactions, but the fees are di...

- (Topic 6) Buying a security with the intent of selling it prior to its maturity date to increase the return is an example of:

- (Topic 6) A company that is issuing a new class of stock would use the services of a(n):

- (Topic 6) The future value of $60 invested at 8% compounded per year for three years is:

- (Topic 6) Which of the following companies would be MOST LIKELY to use a wholesale lockbox?

- (Topic 6) Which of the following short-term instruments is used to finance the import or export of

- (Topic 6) A grocery store chain would be likely to use all of the following services EXCEPT:

- (Topic 6) Which of the following items would be classified as a source of cash on a company's statement of cash flow?

- (Topic 6) A prearranged ACH payment normally includes which of the following?

- (Topic 6) A KEY feature of municipal bonds is that they are:

- (Topic 6) Which of the following clears international checks?

- (Topic 6) Which of the following is responsible for examining national banks?

- (Topic 6) Given a corporate tax rate of 34%, a tax-exempt yield of 7% is equivalent to a taxable yield of:

- (Topic 6) A company uses a dividend capture strategy to:

- (Topic 6) Under which of the following circumstances is lengthening the disbursement mail float NOT a benefit to the disbursing company?

- (Topic 6) The PRIMARY objective of the AFP Account Analysis Standard is to help cash managers in which of the following areas?

- (Topic 6) Which of the following statements is true about a forward foreign exchange contract?

- (Topic 6) Which statement is typically true about cash dividends?

- (Topic 6) Treasury management systems help cash managers do which of the following?

- (Topic 6) All of the following are differences between Fedwire and ACH EXCEPT:

- (Topic 6) Which of the following is NOT characteristic of commercial paper with a term of less than 270 days?

- (Topic 6) A retail lockbox system is characterized by which of the following?

- (Topic 6) A currency is said to trade at a discount if it is worth:

- (Topic 6) Which of the following statements is true about futures contracts?

- (Topic 6) A U.S. company that is expecting to receive a payment of C$1,000,000 purchased a put option of C$1,000,000 at a strike price of 1.75 C$/US$. Two days before the receipt...

- (Topic 6) Which of the following are interest-bearing instruments?

- (Topic 6) The time between the payor's mailing of a check and the payee's receipt of usable funds is known as:

- (Topic 6) The process by which a bank or insurance company guarantees the debt obligation of a borrower is referred to as credit:

- (Topic 6) A company can use all of the following documents to establish a relationship with a bank EXCEPT: