CTP Practice Questions

Under a loan agreement, which of the following could be an event of default?

I. Nonpayment of interest when due

II. A material adverse change in the condition of the borrower

III. A debt-to-equity ratio above the limit specified

IV. Shortening the cure period by half

Which of the following are KEY issues to be considered when establishing a shared service center (SSC)?

I. Selecting the location

II. Comparing an SSC structure to outsourcing of a process

III. Choosing and implementing the technology for SSC

IV. Choosing the collection bank

A large multinational company recently implemented new processes to automate its treasury operations. If these changes were the direct result of comparing the company's practices with those of other companies, the activities could be considered an example of which of the following?

I. Liquidating

II. Re-engineering

III. Benchmarking

IV. Forecasting

A company has asked its marketing, payroll and sales teams to collaborate in finding a solution that could augment its customer base, reduce payroll cost and increase sales. The solution has to be market ready. Which of the following will serve all 3 purposes?

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.

In this situation, the net earnings credit amount for the month would show:

An airline has entered into an agreement with its partners to offset receivables and payables for a specified period of time and to transmit or receive the difference via funds transfer at the end of the period. This is an example of:

Use the financial statement for XYZ Company in the exhibit to answer this question.

What is the cash flow from operating activities for the current year?

Securities sold by companies in an initial public offering (IPO) ar

E.  

Company XYZ has stable cash flows and sizable assets. The board of directors compared its WACC with its own industry’s averages and determined that it may be at a competitive disadvantage. In order to become more competitive, what action will XYZ MOST LIKELY take?