Free AFP CTP Exam Questions

Become AFP Certified with updated CTP exam questions and correct answers

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Total 932 Questions | Updated On: Jan 08, 2025

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Question 1

The Treasury Manager is forecasting sales based on historical data. It was observed that sales decreased sharply in December last year, normally a high sales volume period. Further investigation indicated that a severe winter storm was experienced across the Southeastern United States. How should this event be classified in the forecast when considering the sales trends?

A : ndom movement

B : ationary series

C : clical pattern

D : asonal pattern

Answer: A

Question 2

Company ABC needs external capital to finance a new product line. Its operating leverage is high, and its revolving credit agreement contains a ratings trigger. What will Company ABC MOST LIKELY do to finance its new product line?

A : ue convertible debentures

B : ue long-term notes.

C : ue common stock.

D : retained earnings.

Answer: C

Question 3

Which of the following investment instruments is a discount instrument?

A : nker's acceptance

B : nkee CD

C : easury note

D : nicipal bond

Answer: A

Question 4

The issue of corporate governance in publicly traded companies arises from:

A : separation of shareholder ownership and management control.

B : conflict between the interests of bond holders and equity holders.

C : secrecy surrounding the proceedings of board of directors meetings.

D : inherent conflict of interest that exists when accounting firms are paid to provide audit services.

Answer: A

Question 5

All of the following would encourage a company operating nationwide to develop multiple banking relationships EXCEPT:

A : hanced credit availability.

B : ailability of specialized services.

C : ographic proximity.

D : ministrative cost savings.

Answer: D

Page: 1 / 187

Total 932 Questions | Updated On: Jan 08, 2025

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