CTP Exam Questions

- (Topic 7) BF Company, a manufacturer of food products, reported financial information shown in the Exhibit for the end of the year. BF Company is subject to covenants in its comm...

- (Topic 7) According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?

- (Topic 7) Which of the following statements are true about collected balances?

- (Topic 7) The year-end income statement and balance sheet accounts for a company as of December 31, Year 1 are shown in the Exhibit. If no changes occurred in the current asset a...

- (Topic 7) A measure of the incremental impact of a company's investments on market capitalization is known as:

- (Topic 7) A treasury project manager is tasked with improving day's sales outstanding. The company, a major retailer, sells 70% of its products to businesses. The project manager...

- (Topic 7) Which cost benefit analysis technique uses the methodology to find where the present value of each project's cash inflows equals the present value of each project's out...

- (Topic 7) A manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash ma...

- (Topic 7) In recent years, there has been a sharp increase in the use of technology for certain financial transactions. Which of the following has increased dramatically over rec...

- (Topic 7) Which method of financing would a company use to establish a wholly owned subsidiary to perform credit operations and obtain accounts receivable financing for the sale...

- (Topic 7) Which of the following services allows a bank to match checks presented for payment against company check issuance data?

- (Topic 7) If a company's pension plan offered its executives the right to contribute a greater percentage of their salary to the plan than the percentage offered to other employe...

- (Topic 7) An accounts receivable manager has been asked to accelerate cash into her company by offering trade discount terms to its customers. Her company's cost of capital is 11...

- (Topic 8) Which of the following is a regulation that is having a major impact on the treasury profession?

- (Topic 8) A cash manager is responsible for a small subsidiary that has significant funds but only writes one check per month. Which of the following types of accounts would the...

- (Topic 8) At the time of the initial debt contract, the only way debt holders can protect their interests effectively is to establish certain provisions or covenants designed to:

- (Topic 8) Which of the following institutions would be regulated by the Office of the Comptroller of the Currency (OCC)?

- (Topic 8) Which currency will sell at the greatest discount in the forward market against the U.S. dollar?

- (Topic 8) Company ABC has recently started to experience a significant reduction in funds availability. Which of the following is MOST LIKELY to reduce funds availability?

- (Topic 8) In the event of bankruptcy and the subsequent liquidation of issuer's debt, in what order, from first to last, will the following be repaid? 1.Senior secured debt 2.Sen...

- (Topic 8) A company that has facilities in different states and wants to control funding and facilitate

- (Topic 8) A disclaimer opinion is required on a set of financial statements when:

- (Topic 8) Multinational corporations repatriate funds from foreign operations through which of the following?

- (Topic 8) A multinational corporation has a successful subsidiary in a country that taxes cross-border dividend payments at 72%. Collections on accounts receivable average 90% pe...

- (Topic 8) Which of the following is LEAST important when a cash manager determines a company's short-term cash position?

- (Topic 8) Financial statement preparation guidelines are provided by:

- (Topic 8) A short-term bank line with $20 million of unused capacity and an investment in an overnight money market fund are both forms of which liquidity requirement?

- (Topic 8) A company's lockbox bank, which processes 24 hours per day, has a 6:00 P.M. ledger credit cutoff and grants same-day availability on checks drawn on Bank B that are rec...

- (Topic 8) When a company creates future receivables and/or payables that are denominated in a currency other than its home or functional currency it is faced with:

- (Topic 8) A large multinational company with multiple autonomous operational entities is MOST LIKELY to operate.

- (Topic 8) All of the following are advantages of forward contracts EXCEPT they:

- (Topic 8) A major toy retailer operates 65 stores throughout the Midwest. Which of the following collection methods is MOST LIKELY to be used by this company?

- (Topic 8) Which two of the following are methods for concentrating weekend deposits in a field deposit system? 1.Using a wire transfer for the funds on Monday 2.Anticipating depo...

- (Topic 8) The cash manager for a company is creating a list of transactions that should be considered when determining the daily projected closing cash position. Which of the fol...

- (Topic 8) On the basis of the information above, what level of net collected balances is necessary to compensate a bank for $1.00 worth of services?

- (Topic 8) Company ABC decides to outsource certain activities to an unrelated company and have that company assume the associated loss exposures. What loss control technique is C...

- (Topic 8) An L/C in favor of a U.S. exporter is issued by a bank in an emerging-market country, and it is confirmed by the exporter's bank. What risk is reduced for the U.S. expo...

- (Topic 8) To acquire an asset without putting debt on the balance sheet, a company should consider which of the following arrangements?

- (Topic 8) Companies in the U.S. with a nationwide over-the-counter/field bank collection and concentration system often deal with:

- (Topic 8) Which of the following factors would the cash manager consider when deciding whether to make a payment via Fedwire or ACH? 1.Cost of the payment 2.Payment due date 3.Av...

- (Topic 8) Which of the following is considered an important factor when selecting a financial service provider?

- (Topic 8) All of the following are typical uses of a zero balance account EXCEPT:

- (Topic 8) Financial ratios may provide an inaccurate forecast of a company's performance because

- (Topic 8) A company is considering issuing debt in a market environment in which there is a larger than normal spread between high- and low-risk investments. Among several factor...

- (Topic 8) Which of the following is a type of borrowing between a company and a lender in which the paperwork connected with it is used to simplify the lending process?

- (Topic 8) What is a KEY reason that both a lessee and a lessor would enter into a lease financing agreement?

- (Topic 8) A U.S. company is selling product for US$10,000 to a Canadian company with payment in Canadian dollars. The exchange rate has been booked at C$1.45/US $1 for payment up...

- (Topic 8) The primary bank for a major multinational company would use an overlay structure for euro zone cash concentration under which of the following circumstances?

- (Topic 8) A multinational company that uses "notional pooling" for its euro zone subsidiaries will

- (Topic 8) What is the MOST appropriate definition of working capital?