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Free Certified Treasury Professional Practice Questions

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Total Questions : 1076

Start with our free CTP practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real AFP Certification exam. Each CTP exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your AFP weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 51

If a company does not have cash available to make an interest payment on a bond, the company is experiencing difficulty with its:

Options:

A.  

profitability.

B.  

asset-liability management.

C.  

capital structure.

D.  

liquidity management.

Discussion 0
Question # 52

A multidivisional domestic company with centralized treasury decision-making can potentially utilize intra-company lending to:

Options:

A.  

reduce the overall liquidity of the company.

B.  

establish individual subsidiary borrowing facilities.

C.  

source debt in different currencies.

D.  

lower the overall cost of short term funds.

Discussion 0
Question # 53

Which of the following is the MOST accurate statement regarding the passage of the Sarbanes-Oxley Act?

Options:

A.  

It is the latest in a long line of corporate governance acts.

B.  

It was the first corporate governance act in American history.

C.  

It was a drastic change in the regulation of corporate governance.

D.  

It had little effect on corporate governance.

Discussion 0
Question # 54

A Treasury Management System (TMS) is used to:

Options:

A.  

obtain account balances.

B.  

translate EDI documents.

C.  

review bank availability schedules.

D.  

open new bank accounts.

Discussion 0
Question # 55

A multinational corporation with many FSPs requires a TMS that can display extensive and complex information in an effective manner. The corporation will be looking for a TMS with what functionality?

Options:

A.  

Bank administration

B.  

Dashboards

C.  

Data integration

D.  

Modularity

Discussion 0
Question # 56

Which of the following is a PRIMARY responsibility of a company's risk management function?

Options:

A.  

Insurance

B.  

Auditing

C.  

Leasing

D.  

Liquidity monitoring

Discussion 0
Question # 57

A manufacturing company begins using just-in-time (JIT) inventory management. Which JIT-related payment process is MOST LIKELY to be implemented?

Options:

A.  

Forward dated check

B.  

Point of purchase

C.  

Paid-on-production

D.  

Fedwire

Discussion 0
Question # 58

Treasury policies and procedures should include responsibilities for:

Options:

A.  

determining when dividends should be paid.

B.  

evaluating alternative capital projects.

C.  

approving department salary increases.

D.  

key personnel in the treasury organization.

Discussion 0
Question # 59

Which of the following payment instruments is initiated by the payee rather than the payor?

Options:

A.  

Travelers checks

B.  

Pre-authorized drafts

C.  

Government warrants

D.  

Money orders

Discussion 0
Question # 60

A UK based manufacturer has a subsidiary in Belgium and a manufacturing plant in Italy. The subsidiary wants to sell its products in Sweden. How would the UK parent best structure the movement of funds within the organization to optimize management of working capital while ensuring recourse?

Options:

A.  

Internal factoring

B.  

Re-invoicing

C.  

Export financing

D.  

Multilateral netting

Discussion 0

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