Pass the AFP Certification CTP Questions and answers with ExamsMirror

Compared to a letter of credit, a documentary collection is:

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 ABC puts the customer on open book credit, what is the MOST LIKELY outcome?

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 factors, what are the concerns regarding investor behavior that the treasurer will MOST need to consider?

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 have a negative impact on the float of its trading partners, ABC can do which of the following to help address this concern?

Determining that payments are made to vendors and suppliers based on credit terms is the responsibility of:

A wholesale lockbox system does which of the following?

A globally diversified manufacturing company can manage its liquidity more effectively by:

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?

A company seeking an insured investment would avoid investing surplus cash in a:

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 and has asked the treasury department for guidance. The desired solution may impact days sales’ outstanding but will have the lowest credit risk to Company XYZ. What will treasury recommend?

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 plan, should address:

The MICR encoding on a check provides all of the following information EXCEPT:

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:

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-effective manner?

Evaluating the liquidity needs of an organization is a function of:

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

A company wants to implement more control over its cash management system. Which aspect of the system is the most susceptible to external fraud?

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

A multinational corporation has a successful subsidiary in a country that taxes cross-border dividend payments at 72%. Collections on accounts receivable average 90% per month, and the average rate on local government bond investments is 2.5%. What would be the BEST method for the company to repatriate local profits?

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. The cost is $5 per sensor. Last month LLZ acquired a company in Mexico that makes the sensors for $1 per sensor. LLZ plans to move all sensor manufacturing operations to the factory in Mexico. What is the movement of this cost saving process called?