CTP Exam Questions

- (Topic 8) In predicting collections from credit sales, a cash manager can obtain prior period information from which of the following sources?

- (Topic 8) LLZ Company manufacturers metal detectors in California at a cost of $9 per unit. The most expensive component to make is the sensor which goes in the finished product....

- (Topic 8) Compared to a letter of credit, a documentary collection is:

- (Topic 8) A company seeking an insured investment would avoid investing surplus cash in a:

- (Topic 8) Determining that payments are made to vendors and suppliers based on credit terms is the responsibility of:

- (Topic 8) A wholesale lockbox system does which of the following?

- (Topic 8) Owners of a privately-held company have decided to sell the business, but are receiving offers dramatically lower than what the firm is worth (as estimated by the owner...

- (Topic 8) ABC Company offers trade terms of 2/10 NET 30. For several reasons, ABC has decided to eliminate the requirement for a letter of credit from one of its customers. If AB...

- (Topic 8) XYZ Company has decided to transition the responsibility for its hedging activities from the local offices to the head office; however, the local offices will continue...

- (Topic 8) A multidivisional domestic company with centralized treasury decision-making can potentially utilize intra-company lending to:

- (Topic 8) ABC company has a significant number of customers who are mainly consumers making monthly installment payments. Which one of the following types of lockbox would be the...

- (Topic 8) Which of the following is NOT a component of the operating cycle?

- (Topic 8) overall goals and objectives over a period of time?

- (Topic 8) Which of the following is the appropriate strategy to use for an active portfolio manager who is faced with an upward sloping yield curve?

- (Topic 8) Which of the following objectives of treasury management refers to a company's ability to meet current and future financial obligations in a timely, efficient, and cost...

- (Topic 8) international distributor. To support this activity, the company arranges for export financing because:

- (Topic 8) The Sarbanes-Oxley Act of 2002 requires that a public company's financial statements be certified by the company's:

- (Topic 8) U.S.-based manufacturing Company XYZ is looking to deliver finished goods to ABC Company in a developing nation. The credit department wants to ensure collectability an...

- (Topic 8) A company that is considering using a central lockbox for collections has conducted an initial study and determined the following: What will be the annual net dollar be...

- (Topic 8) One reason for charging management fees to subsidiaries is to:

- (Topic 8) ABC Company has recently moved away from paper-based invoicing systems and has begun implementing e-commerce solutions. Realizing that its e-commerce implementation may...

- (Topic 8) In order to reduce the premiums paid to insurance companies, a company should consider retaining or self insuring for:

- (Topic 8) The U.S. government agency that administers and enforces trade sanctions against

- (Topic 8) In a large company, the financial planning function typically falls directly under the responsibility of the:

- (Topic 8) Which of the following would increase if the Fed were to announce a reduction in reserve requirements?

- (Topic 8) Which of the following services allows a single account to be used by a company with multiple units?

- (Topic 8) The MOST important tool the Federal Reserve Board has for influencing the amount of reserves in the banking system is:

- (Topic 8) If ¥120.14 = U.S.$1.00 and € .7564 = U.S.$1.00, how many ¥ = €1.00?

- (Topic 8) In a maturity matching financing strategy, which of the following is financed using short- term sources?

- (Topic 8) Evaluating the liquidity needs of an organization is a function of:

- (Topic 8) An airline has entered into an agreement with its partners to offset receivables and payables for a specified period of time and to transmit or receive the difference v...

- (Topic 8) A lockbox provider offers which of the following advantages over a company processing center?

- (Topic 8) Contingency plans often focus on the business supply chain, ensuring that customer service is maintained. The financial supply chain, which is equally critical to the p...

- (Topic 8) purchase $3.1 million of equipment from ABC Co. XYZ Inc. wants to structure payment by paying 10% at time of order, 40% at time of shipment and the remaining 50% at tim...

- (Topic 8) A small group of investors is purchasing a company using a large amount of debt. This group is intending to sell off pieces of the acquired company to other firms that...

- (Topic 8) If a company does not have cash available to make an interest payment on a bond, the company is experiencing difficulty with its:

- (Topic 8) Company J is looking to perform an A/R cash analysis based on the following sales information: 60% of sales are collected within two months after sale. After three mont...

- (Topic 8) If the Federal Reserve wanted to stimulate a sluggish economy, it could do so by:

- (Topic 8) Traditionally the primary source of operating risk in the area of external theft or malfeasance has been related to:

- (Topic 8) Multi-divisional or multi-subsidiary companies have opportunities to optimize their working capital position and overall liquidity by doing which of the following?

- (Topic 8) A farmer who plans to sell his/her corn crop in three months would benefit MOST from which of the following?

- (Topic 8) An analysis of variances from expected cash flows is used to:

- (Topic 8) The MICR encoding on a check provides all of the following information EXCEPT:

- (Topic 8) A manufacturing company has no liquidity and needs to purchase additional inventory in 60 days. Which of the following would have helped the company plan for this situa...

- (Topic 8) Improvements to the cash flow timeline from a selling company's perspective would include:

- (Topic 8) Which of the following is true about disbursement ZBAs?

- (Topic 8) Which section of the statement of cash flows includes items that represent the cash inflows and outflows related to the daily functions of a company?

- (Topic 8) When a foreign subsidiary pays a dividend to its parent company the transfer of funds may be subject to:

- (Topic 8) A utility company is evaluating whether or not it should build a new plant. The process of reviewing the quantitative and qualitative factors are an example of which fi...

- (Topic 8) The term "factoring" refers to a: