Verified AFP CTP Exam Dumps for Last-Minute Exam Prep

Question No: 1

MultipleChoice

Which of the following is LEAST likely to appear on an account analysis?

Options

AService charges

BAverage float balance

CEarnings allowance rate

DMoney market rate

Question No: 2

MultipleChoice

For a defined benefit plan,

Options

Aplan assets equal plan liabilities.

Bplan assets can be less than plan liabilities.

Cplan assets are greater than plan equity.

Dplan assets always equal plan equity.

Question No: 3

MultipleChoice

The Treasurer of PJB Company is in charge of implementing new treasury management software. Without issuing any RFPs, the Treasurer hires a consulting company to install the software and program it to suit the company's needs. The Treasurer is responsible for approving the consultant's invoices for payment. Through conversation, the CFO discovered that the Treasurer's relative is one of the partners at the consulting company. The Treasurer was immediately terminated. What did the Treasurer MOST LIKELY violate?

Options

AThe corporate code of conduct

BSarbanes-Oxley controls

CThe Uniform Commercial Code

DTreasury operations procedures

Question No: 4

MultipleChoice

The Treasurer at Worldwide Industries is concerned that its retail lockbox provider, Bank A, is not PCI DSS-compliant. Bank A processes 500,000 checks per month for Worldwide Industries. Worldwide Industries uses a third-party provider, Pay Point, for their credit card payments and funds are wired daily to Worldwide's depository account at Bank

Options

AWhat should the Treasurer do?

ATake no action as Bank A would not be required to be PCI DSS-compliant.

BIssue an RFP and search for a lockbox provider that is PCI DSS-compliant.

CStop accepting credit card payments since Bank A is not PCI DSS-compliant.

DNotify all customers that pay by credit card that Bank A is not PCI DSS-compliant.

Question No: 5

MultipleChoice

Company XYZ is aggressively expanding globally. It is evaluating four markets: Latin America, Europe, Asia and Middle East.

Latin Americ

Options

ARisk adjusted discount ratE. 15%, Payback period=7 years, IRR=15%
EuropE. Risk adjusted discount ratE. 8%, NPV=$20M
Middle East: Risk adjusted discount ratE. 11%, IRR=12%, NPV=$5M
AsiA. WACC. 9%, Payback=2 yrs, IRR=8%
Based on the information, which two markets will company XYZ MOST LIKELY pursue?

AEurope and Asia

BAsia and Latin America

CEurope and Middle East

DMiddle East and Latin America

Question No: 6

MultipleChoice

An equity management company's Chief Financial Officer and Treasurer are evaluating their corporate investments and decide that they need to diversify their stock holdings to include personal care products companies. Based on their analysis, publicly-traded companies A and B stand out as choices. Company A has a beta value of 0.65 while company B has a beta value of 1.10. They decide to invest in Company

Options

AWhat objective of their investment policy did they use to make their decision?

ASafety

BLiquidity

CExposure horizon

DRisk/return trade-off

Question No: 7

MultipleChoice

Since the inception of ABC Company's pension plan, 1,500 employees qualified and were paid pensions of $500 million after retirement, of which 700 employees were those who earned $110,000 or more and received $200 million in pension benefits. When the company filed for bankruptcy in 2010, the IRS claimed back taxes from the company stating that the pension plan was not qualified under ERIS

Options

AOn what basis was the IRS MOST LIKELY making its claim?

AAdequate funds were not available to meet the plan's obligations.

BPension benefits were not safeguarded when the pension plan was terminated.

CThe company failed to remit its PBGC premiums.

DThe plan did not meet the minimum coverage requirements.

Free AFP CTP Exam Dumps June 2026