Most UptoDate AFP CTP Exam Dumps PDF 2023 [Q502-Q519]

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Most UptoDate AFP CTP Exam Dumps PDF 2023

100% Free Certified Treasury Professional CTP Dumps PDF Demo Cert Guide Cover

To be eligible to take the AFP CTP Exam, candidates must have a minimum of two years of professional experience in corporate treasury or finance. They must also have a bachelor’s degree from an accredited institution or equivalent work experience. CTP exam is computer-based and is offered at various testing centers around the world. Candidates must score a minimum of 70% to pass the exam and earn their CTP certification.

NEW QUESTION 502
PTC Corporation has determined that the threshold amount for initiating a wire transfer vs. an ACH payment for concentrating funds is $60,225. Wires cost $9.00 and save one day of float. If the opportunity cost is 5%, what is the cost of the ACH payment?

$0.75

$0.80

$0.90

$1.00

NEW QUESTION 503
A main characteristic of a company with regional offices using a centralized treasury function is:

high level of control.

increased borrowing costs.

centrally determined depository accounts.

increased operating costs.

NEW QUESTION 504
According to risk management experts, the BEST approach in managing operational risk is to:

maintain a strong business continuity plan that can be used in disaster situations.

document all company policies and procedures to ensure appropriate training for new staff.

create a strong technological infrastructure that can identify security breaches as they occur.

develop a corporate culture that promotes individual responsibility and supports educated risk taking.

NEW QUESTION 505
As an internal control tool, what does the matching of an invoice to the original purchase confirm?

The placement of the order

The fulfillment of the order

The execution of the order

The payment of the order

NEW QUESTION 506
Given a corporate tax rate of 34%, a tax-exempt yield of 7% is equivalent to a taxable yield of:

4.6%.

7.0%.

10.6%.

34.0%.

NEW QUESTION 507
Major Manufacturing Inc. (MMI) is a manufacturer of customized restaurant equipment. MMI’s supplier relations policy is to take advantage of trade discounts, when available. All suppliers offer payment terms of 1/10, net 30. MMI invoices customers at the end of its 30-day manufacturing cycle. Which of the following is the correct chronological sequence of the events listed?
1.Customer invoice is sent.
2.Supplier payment is sent.
3.Customer payment is received.
4.Order is shipped.
5.Customer order is received.
6.Supplier order is placed.

5, 6, 2, 4, 1, 3

5, 6, 4, 2, 3, 1

6, 5, 2, 4, 3, 1

6, 5, 4, 2, 1, 3

NEW QUESTION 508
ABC Corporation receives images of paid check exception items from its bank and reviews them daily. What action should be taken on an item where the payee on the image does NOT match the data from ABC Corporation’s accounts payable?

Bank alerts payee that check is unmatched.

ABC Company utilizes the holder in due course defense.

Image remains stored on ABC Corporation’s network for future customer inquiries.

No-pay decision is communicated to the bank.

NEW QUESTION 509
A consumer is presented with payment options from a merchant when making a purchase. The consumer does not wish to share any information that could be later used in identity theft or fraud, while the merchant requires guaranteed payments within 24 hours with no NSFs or declined payments. Which of the following options would suit both the consumer and the merchant?

NACHA’s Secure Vault PaymentsTM

Credit card payment

Direct debit

E-check

NEW QUESTION 510
Check MICR line information includes which of the following?
I.Bank of deposit identification number II.Payee bank identification number III.Federal Reserve bank code IV.Payor’s account number

I only

III and IV only

II, III, and IV only

I, II, III, and IV

NEW QUESTION 511
XYZ Company is a net borrower. Its cost of funds is 5.0%, its earnings credit rate is 3.0%, and the reserve requirement is 10%. Average service fees are $50,000 per month. Its average ledger balance is $2,000,000, and its average collected balance is $1,000,000. What are the collected balances required to pay for services during a 30-day month?

$12,166,667

$13,518,519

$20,277,778

$22,530,864

NEW QUESTION 512
A national retailer’s cash management system includes a field deposit system using multiple banks. To limit the impact of a failure of one of these banks, a cash manager should:

consolidate all accounts at one bank.

use wire transfers for concentration.

monitor each bank’s credit policies.

concentrate cash on a regular basis.

NEW QUESTION 513
A treasurer has been advised that his privately held company has just lost its largest customer, which will have a significant impact on earnings. The treasurer applies an aggressive working capital strategy. Presently, the yield curve is upward sloping. Given this information, the treasurer should ensure that the company has:

short-term non-committed lines.

short-term committed lines.

long-term non-committed lines.

long-term committed lines.

NEW QUESTION 514
Company X has asked its banking partner for a recommendation on which type of bank account would be best if it has excess funds that are not required for daily cash management. The company determined the excess cash flows by using the short-term cash forecasting distribution method. Company X will require a return on these funds. Which account is recommended?

Zero Balance

Time Deposit

Demand Deposit

Controlled Disbursement

NEW QUESTION 515
A U.S. exporter has agreed to export goods to a Canadian buyer with net 30 payment terms due in Canadian dollars. What type of risk is the exporter exposed to?

Economic exposure

Commodity exposure

Transaction exposure

Translation exposure

NEW QUESTION 516
To arrive at the closing cash position, a cash manager must add the expected settlements in the collection and concentration accounts and deduct the projected disbursement totals from the:

opening available balance.

closing ledger balance.

opening ledger balance.

closing investment account balance.

NEW QUESTION 517
A company’s credit agreements or loan covenants may require:

minimum ratings for insurance carriers.

high deductible levels and risk retention in order to minimize premium payments.

outsourcing of the claims approval and payment process to an insurance company.

risk management staff to work directly with underwriters to reduce commission payments.

NEW QUESTION 518
XYZ Corporation’s current ledger balance of the controlled disbursement account is $1,286,500. Based on the information in the table,

what will the corporation’s available balance be at the end of today?

$(251,527)

$126,744

$434,706

$1,748,473

NEW QUESTION 519
In evaluating alternative capital investments, a company should consider qualitative factors such as:

projected cash flows.

estimated economic returns.

corporate strategy.

estimated costs.

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AFP CTP certification exam covers a wide range of topics related to treasury management, including cash management, risk management, financial analysis, and treasury operations. CTP exam is designed to test candidates’ knowledge and skills in these areas, and it is considered to be one of the most rigorous and comprehensive certification exams in the financial industry. Passing the AFP CTP exam demonstrates a high level of proficiency and expertise in the field of treasury management, and it can help individuals advance their careers and increase their earning potential.

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