Free CTP Braindumps Download Updated on Dec 03, 2021 with 932 Questions
AFP CTP Exam Practice Test Questions
NEW QUESTION 289
Which of the following would be true for a company with high operating leverage?
- A. Its cost of goods sold does not increase as revenues increase.
- B. It has high variable costs per unit sold.
- C. If revenues increase marginally, it can achieve a large percentage increase in profits.
- D. Its semi-variable costs do not have a fixed cost component.
Answer: C
NEW QUESTION 290
Which of the following are interest-bearing instruments?
I. Certificates of deposit
II. Treasury bills
III. Treasury notes
IV.
Banker's acceptances
- A. I, III, and IV only
- B. I and III only
- C. II, III, and IV only
- D. I and IV only
Answer: B
NEW QUESTION 291
On a statement of cash flow, which of the following items are considered sources of cash?
I. Increase in short-term investments II. Net income
III. Increase in accounts payable
IV.
Decrease in long-term debt
- A. II and IV only
- B. II and III only
- C. I and III only
- D. I, III, and IV only
Answer: B
NEW QUESTION 292
When a company announces a significant and unexpected dividend increase, it signals to the market that management expects:
- A. earnings in future periods will be lower than in past periods.
- B. to split the stock in future periods.
- C. earnings in future periods will be higher than in past periods.
- D. earnings in future periods will not change.
Answer: C
NEW QUESTION 293
The interest costs on commercial paper are determined by all of the following EXCEPT the:
- A. rating agency fees.
- B. backup line of credit fees.
- C. dealer fees.
- D. maturity of the paper.
Answer: A
NEW QUESTION 294
Which of the following ASC X12 transactions is used to confirm the receipt and compliance of transmitted sets?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
NEW QUESTION 295
According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?
- A. An increase in the company's stock price
- B. A decrease in the expected market return
- C. An increase in the T-bill rate
- D. A decrease in the tax rate
Answer: C
NEW QUESTION 296
If a bank has a 10% reserve requirement, a 31-day month, and an earnings credit rate of 6.5%, which of the following is the approximate level of collected balances required to support $1.00 worth of bank service charges?
- A. $201
- B. $199
- C. $206
- D. $181
Answer: A
NEW QUESTION 297
The U.S. Congress establishedthe.
- A. OFAC.
- B. UCC.
- C. FinCEN.
- D. OC
Answer: D
NEW QUESTION 298
All of the following are reasons to use a confirmed irrevocable letter of credit EXCEPT concern about:
- A. the stability of the buyer's bank.
- B. foreign currency exposure.
- C. the ability to receive cross-border payments.
- D. the buyer's ability to pay.
Answer: B
NEW QUESTION 299
A large retailer is preparing to accept credit cards and anticipates monthly credit card sales of $1,000,000. If the terms with the acquiring bank include bundled allocated fees of 6% and the retailer wishes to delay fee payment as long as possible, what should the retailer do?
- A. Place a hold on consumer credit limits.
- B. Receive net settlement.
- C. Accept gross settlement.
- D. Delay funds transfer to card-issuing banks.
Answer: C
NEW QUESTION 300
Which of the following is an example of a qualitative factor used in making credit decisions?
- A. Collateral
- B. Capital
- C. Capacity
- D. Character
Answer: D
NEW QUESTION 301
Buying a security with the intent of selling it prior to its maturity date to increase the return is an example of:
- A. an interest rate future.
- B. active investment strategy.
- C. a diversification program.
- D. matching investment strategy.
Answer: B
NEW QUESTION 302
The Treasurer at Worldwide Industries is concerned that its retail lockbox provider, Bank A, is not PCI DSS-compliant. Bank A processes 500,000 checks per month for Worldwide Industries. Worldwide Industries uses a third-party provider, Pay Point, for their credit card payments and funds are wired daily to Worldwide's depository account at Bank A.
What should the Treasurer do?
- A. Notify all customers that pay by credit card that Bank A is not PCI DSS-compliant.
- B. Stop accepting credit card payments since Bank A is not PCI DSS-compliant.
- C. Take no action as Bank A would not be required to be PCI DSS-compliant.
- D. Issue an RFP and search for a lockbox provider that is PCI DSS-compliant.
Answer: C
NEW QUESTION 303
Included in the CAMELS rating system for financial institutions are all of the following EXCEPT:
- A. earnings.
- B. liquidity.
- C. asset quality.
- D. credit rating.
Answer: D
NEW QUESTION 304
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