AFP CTP Exam - Topic 4 Question 14 Discussion

Actual exam question for AFP's CTP exam

Question #: 14
Topic #: 4

[All CTP Questions]

A company purchased merchandise that cost C$155,000 from a Canadian supplier and then resold the merchandise for US$135,000. What rate of exchange must the company have obtained to realize a gross profit of US$44,000 on this transaction?

A0.3259 US$/C$

B1.1500 US$/C$

C0.5871 C$/US$

D1.7033 C$/US$

Show Suggested Answer

Suggested Answer: D

by Loren at Aug 14, 2025, 02:09 AM

Limited Time Offer

25%

Off

Get Premium CTP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Leslee

3 months ago

Definitely option B, it checks out!

upvoted 0 times

...

Stefania

4 months ago

Wait, how can they make a profit with that exchange rate?

upvoted 0 times

...

Dacia

4 months ago

I think it's option B, that rate makes sense!

upvoted 0 times

...

Dorothy

4 months ago

Surprised they could sell it for that much!

upvoted 0 times

...

Kimbery

5 months ago

The cost in US$ is about 111,000.

upvoted 0 times

...

Casie

5 months ago

I vaguely recall that we discussed how to convert currencies and calculate profits, but I can't remember the exact method we used.

upvoted 0 times

...

Caitlin

5 months ago

I feel like option B could be the right answer, but I’m not completely confident. I need to double-check my calculations.

upvoted 0 times

...

Carey

5 months ago

I think we need to find the cost in US dollars first and then determine the exchange rate. I hope I remember the steps correctly!

upvoted 0 times

...

Amalia

5 months ago

I remember we practiced a similar question about calculating exchange rates and gross profit, but I'm not sure if I got the formula right this time.

upvoted 0 times

...

Judy

6 months ago

This is tricky, but I think if I break it down step-by-step, I can figure it out. Let me start by converting the Canadian dollars to US dollars using the exchange rate.

upvoted 0 times

...

Tonette

6 months ago

Okay, I think I've got this. I just need to set up an equation using the given information and then solve for the exchange rate. I've got this!

upvoted 0 times

...

Ashanti

6 months ago

Hmm, I'm a bit confused on how to approach this. Do I need to convert the Canadian dollars to US dollars first, or can I work with the given amounts?

upvoted 0 times

...

Krissy

6 months ago

This looks like a straightforward currency exchange problem. I'll need to set up an equation to solve for the exchange rate.

upvoted 0 times

...

Erinn

7 months ago

The question says the company realized a gross profit of US$44,000, so the answer must be B) 1.1500 US$/C$. Simple math, really.

upvoted 0 times

...

Tarra

7 months ago

Hmm, this question requires some careful calculation. Let me think this through... Ah, got it! The answer is B) 1.1500 US$/C$.

upvoted 0 times

Barrett

3 months ago

Good job, everyone! We nailed it!

upvoted 0 times

...

Judy

3 months ago

I calculated it and got the same answer!

upvoted 0 times

...

Gerri

4 months ago

Yeah, the profit margin is key here.

upvoted 0 times

...

Nenita

4 months ago

I think it’s B too! Makes sense.

upvoted 0 times

...

Elvera

8 months ago

I'm not sure, but I think the correct answer is B) 1.1500 US$/C$

upvoted 0 times

...

Shantay

8 months ago

I think the answer is B) 1.1500 US$/C$. The company purchased merchandise for C$155,000 and resold it for US$135,000, so the exchange rate must be 1.1500 US$/C$ to realize a gross profit of US$44,000.

upvoted 0 times