AFP CTP Exam - Topic 5 Question 21 Discussion

Actual exam question for AFP's CTP exam

Question #: 21
Topic #: 5

[All CTP Questions]

In a private label financing arrangement, the seller does which of the following?

ACommits funds to finance accounts receivable.

BOperates its own credit function as a subsidiary.

CReceives the full face value of the sale in most cases.

DLoses authority to decide which customers receive credit.

Show Suggested Answer

Suggested Answer: D

by Brittani at Apr 11, 2026, 03:47 AM

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18 days ago

Totally agree, that's how it works!

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23 days ago

A) is correct, they commit funds to finance receivables.

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1 month ago

I vaguely recall something about the seller losing authority in credit decisions, so option D might be relevant, but I need to double-check that.

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1 month ago

I feel like the seller usually receives the full face value of the sale, which makes me think option C could be correct.

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2 months ago

I remember a practice question where the seller had to decide on customer credit, so I'm leaning towards option D, but it feels a bit tricky.

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2 months ago

I think the seller commits funds to finance accounts receivable, but I'm not entirely sure if that's the right choice.

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