CTP Exam Questions

- (Topic 7) The lockbox receipt records for one 30-day month are provided below. The opportunity costs are 10%. What is the annual cost of float rounded to the nearest dollar?

- (Topic 7) All of the following are basic considerations for balance compensation by a company EXCEPT:

- (Topic 7) In developing treasury policies and procedures, which activity requires key controls to be in place?

- (Topic 7) A treasurer's role in budgeting is primarily to do which of the following?

- (Topic 7) Which of the following is NOT one of the three goals of a disbursement system?

- (Topic 7) An auto manufacturer experienced a decline in sales, an increase in inventory, and an increase in labor costs over the past two months. With all else being equal, what...

- (Topic 7) Three college roommates open a fast-food restaurant chain after graduation. They decide to offer a 401(k) plan to all of their 700+ employees and a defined benefit reti...

- (Topic 7) ABC Company is a net borrower with a weighted average cost of capital of 11.5%. What kind of bank fee arrangement is it likely to prefer?

- (Topic 7) All of the following would encourage a company operating nationwide to develop multiple

- (Topic 7) The discount rate for a T-bill with a face value of $200,000, 182 days to maturity, and a selling price of $194,375 would be:

- (Topic 7) Which two of the following are optimal uses for short-term excess cash?

- (Topic 7) Which of the following activities creates administrative costs associated with a concentration system?

- (Topic 7) All of the following staff would be involved in the evaluation of an outsourced accounts payable solution EXCEPT:

- (Topic 7) A company has a high value for its current ratio. What does this suggest in terms of liquidity and risk?

- (Topic 7) T-bill discount rate = 5.85% T-bill face value = $100,000 Initial term = 90 days What is the bond equivalent yield on this T-bill?

- (Topic 7) Which of the following is a disadvantage of e-commerce?

- (Topic 7) The amount of the discount required to renegotiate credit terms in EDI depends on which two of the following?

- (Topic 7) Under the strict cash basis of accounting, revenue is recorded when:

- (Topic 7) The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%. The company's weighted average cost of capital is:

- (Topic 7) The seller's cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30. What is the seller's net benefit (loss) if the buyer ta...

- (Topic 7) All of the following are objectives of credit management EXCEPT:

- (Topic 7) A telecommunications company has decided to sell its call center hosting division. This is an example of what type of financial decision?

- (Topic 7) The following information about a company is at the end of its fiscal year. The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax...

- (Topic 7) ACCOUNTS RECEIVABLE AT THE END OF MARCH On the basis of the accounts receivable balance pattern above and April sales of $600, the cash flow forecast for April is:

- (Topic 7) A treasurer is evaluating a project that will cost $1,000 but will return cash flows of $225, $225, $300, $750, and $750 in years 1 through 5, respectively. The company...

- (Topic 7) Which of the following are reasons for companies to use controlled disbursement?

- (Topic 7) Companies that seek out other companies that have successfully redesigned their operations are engaging in a process called:

- (Topic 7) A trader of ABC Bank executed and audited his own trades. Assigning these two functions to the same person introduced which one of the following risks to the bank?

- (Topic 7) A company has transferred all treasury functions to a new office overseas. When preparing the disaster recovery plan, the treasury manager seeks to identify the mission...

- (Topic 7) The mix of long-term debt and equity refers to a company's:

- (Topic 7) Operational risk is defined as the risk of direct or indirect losses resulting from external events or failure of internal resources. As treasury departments maintain l...

- (Topic 7) Companies implement EDI in order to realize which of the following benefits?

- (Topic 7) A company's accounts receivable balance pattern is shown in the first table. Credit sales are shown in the second table. What is the cash inflow for the month of August...

- (Topic 7) MICR encoding errors may be detected by all of the following TMS modules EXCEPT:

- (Topic 7) A supplier can improve invoicing float by:

- (Topic 7) A company offers credit terms of net 40, with an opportunity cost of 12% to a customer. What discount would have to be offered for the customer to be indifferent betwee...

- (Topic 7) Company A has operated a Pension Plan since 1985. Despite a recent surge in asset values, the plan remains significantly underfunded. With the passage of the Pension Pr...

- (Topic 7) Included in the CAMELS rating system for financial institutions are all of the following EXCEPT:

- (Topic 7) In an international banking system, what role is commonly carried out by a large group of clearing banks?

- (Topic 7) T-bill discount rate = 5.85% T-bill face value = $100,000 Initial term = 90 days If the U.S. Treasury was considering issuing a 91-day T-bill at the same time as this T...

- (Topic 7) A company wishes to monitor and control office expenses incurred by its employees. Which of the following offers the BEST method of providing the employees freedom to c...

- (Topic 7) A company issues $5 million of commercial paper at a discount for 60 days. The interest cost is $85,000. The backup line fee for this transaction is $2,000, and the dea...

- (Topic 7) A commercial paper issuer who repays investors earlier in the day than it receives funds from new investors often creates which of the following?

- (Topic 7) Which of the following types of payment transactions requires the authorization of both the initiating and the receiving party?

- (Topic 7) For newly issued debt, a company's effective cost of debt is a function of yield to maturity and:

- (Topic 7) Which of the following would be used to evaluate only the effects of varying interest rates while holding all other values constant at their expected levels?

- (Topic 7) When a paper check is converted to an electronic form:

- (Topic 7) A digital signature cannot be forged if:

- (Topic 7) A bank employee programs an internal payment system to transfer half a cent of each transaction to her personal bank account. What type of risk does this behavior illus...

- (Topic 7) Which of the following should NOT be a consideration when setting an optimal dividend policy?