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.

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Suggested Answer: D

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

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3 days 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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