CTP Exam Questions

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

- (Topic 8) Which of the following would MOST directly affect a company's dividend policy?

- (Topic 8) What type of tax does a multinational auto manufacturer commonly pay in foreign countries at each stage of a vehicle's production?

- (Topic 8) Since the inception of ABC Company's pension plan, 1,500 employees qualified and were paid pensions of $500 million after retirement, of which 700 employees were those...

- (Topic 8) Which of the following techniques would MOST accurately predict a company's daily cash position?

- (Topic 8) A globally diversified manufacturing company can manage its liquidity more effectively by:

- (Topic 8) All of the following bank products and services can simplify the preparation of the daily cash position EXCEPT:

- (Topic 8) In this situation, the net earnings credit amount for the month would show:

- (Topic 9) A put option is out of the money when the asset price:

- (Topic 9) An employee is considering two investment strategies for his 401(k) plan: Strategy #1: Invest all contributions in a money market fund that has returned 5% annually Str...

- (Topic 9) Exhibit: If a company had the above activity at a bank for the previous month (a 31-day month), the bank was overcompensated by approximately:

- (Topic 9) A New York company wishes to use its treasury management system to send US funds to its London UK subsidiary. Which one of the following enables the same day settlement...

- (Topic 9) The PRIMARY goal of treasury management is to use which of the following efficiently?

- (Topic 9) Corporate governance for publicly traded U.S. companies includes:

- (Topic 9) An electronics firm realizes that due to adverse events projected over the next 18 months there is a 5% chance that its profits will decrease by $100,000. The company's...

- (Topic 9) Subtracting dividends from net income available to common shareholders is reflected as a change to which of the following balance sheet items?

- (Topic 9) Treasury uses which of the following internal sources of information in its daily operations?

- (Topic 9) Fluctuations in interest rates and the availability of funds are more significant risks for

- (Topic 9) The Treasurer of a publicly-traded U.S. company discovers several large payments which were made from the company's disbursement account without proper approval. These...

- (Topic 9) James Corp has a 7.98% WACC and an assumed tax rate of 30%. James Corp employed €70,000,000 of capital (long-term debt and equity) in a project that generated an operat...

- (Topic 9) An employee who became vested in his/her employer's retirement plan upon reaching five years of service decides to resign after working for seven years. However, he/she...

- (Topic 9) As a result of an employee's intentional actions, an electronic payment to a supplier was misdirected to an unauthorized account. This is an example of which of the fol...

- (Topic 9) The risk that one financial institution's failure could lead to the failure of other financial institutions is known as:

- (Topic 9) Exhibit: What is the price to earnings ratio for Company ABC?

- (Topic 9) An accountant is fired after reporting to the SEC that she witnessed the CFO inappropriately reduce expenses ahead of the quarterly earnings announcement. Which of the...

- (Topic 9) Who has responsibility for final approval of treasury policies that have a significant impact on the organization?

- (Topic 9) The issue of corporate governance in publicly traded companies arises from:

- (Topic 9) The delay between the time a lockbox site receives a check and the check is deposited is called:

- (Topic 9) Investors typically require a higher yield as compensation for holding securities that have:

- (Topic 9) An international organization has decided to move its treasury operations to the head office in Paris, France. The company's goal is to establish the treasury as the pr...

- (Topic 9) Company A purchases materials on cash-before-delivery terms, while Company B uses paid-on-production terms. Both companies are diligent with the protection of assets, b...

- (Topic 9) According to risk management experts, the BEST approach in managing operational risk is to:

- (Topic 9) A U.S. company has a secured committed line of credit of $5.5 million and has an available balance of $4 million. The company successfully transmitted a $5.5 million wi...

- (Topic 9) What is the Weighted Average Cost of Capital for XYZ Company, assuming the following: The pre-tax cost of long term debt is 8% The cost of equity is 11% The marginal ta...

- (Topic 9) A company recently implemented a treasury code of conduct, which defined appropriate actions and business behaviors. The company developed policies and procedures that...

- (Topic 9) Which of the following is LEAST likely to appear on an account analysis?

- (Topic 9) Which of the following can be related to a company's stock price?

- (Topic 9) Which one of the following is true of capital repatriation for multinational companies?

- (Topic 9) A publicly-traded U.S. company has a German subsidiary which has accumulated significant cash balances. The company needs to pay its quarterly dividend but lacks the fu...

- (Topic 9) Which of the following prohibits price discrimination among customers where cost differences do NOT exist?

- (Topic 9) A large U.S. based multinational corporation favors use of intra-company loans to repatriate funds from its foreign subsidiaries in order to take advantage of the favor...

- (Topic 9) Which scenario provides the BEST example of an agency problem?

- (Topic 9) An investor is interested in acquiring ownership in a firm while ensuring predictable timing and amount of cash flow. Which instrument should the investor choose?

- (Topic 9) What is the authoritative accounting standard-setting body for state and local governments, public schools, state universities, and other government-affiliated agencies...

- (Topic 9) The telecommunications network used to transmit international payment instructions is called:

- (Topic 9) Which of the following is an advantage of a centralized treasury function?

- (Topic 9) For days' sales outstanding to be a meaningful method for evaluating the effectiveness of a company's receivable collections, it is usually compared to the:

- (Topic 9) Which of the following is an example of a passive investment strategy?

- (Topic 9) Company ABC has expanded its banking relationships due to international growth. ABC cannot figure out why its collection float amongst its international customers is lo...

- (Topic 9) A consumer's personal check written to pay an electronics store charge-account bill is returned three times by the depositor's bank as NSF. What process is being used?