AFP CTP - Certified Treasury Professional

The assistant treasurer for ABC Inc. has been transferred to the headquarters in another country. While conducting a treasury review, the assistant treasurer noticed that a single associate was responsible for maintaining the company's complicated international transfer pricing schedules on a series of inter-linked computer spreadsheets. These spreadsheets were saved on the associate's computer versus the company's mainframe. The associate did not have a backup cross-trained in the function. Which critical types of risk management require the assistant treasurer's immediate attention?

A company using open account terms with buyers has experienced the following in its last fiscal year:

* Gross sales increased from $10,000,000 to $11,000,000

* Net revenue decreased from $5,000,000 to $4,000,000

* DSO increased from 45 days to 60 days

What has the company MOST LIKELY discovered?

BF Company, a manufacturer of food products, reported financial information shown in the table below for the end of the year.

BF Company is subject to covenants under its revolving credit facility. It is in compliance with which of the following?

A company is preparing for a U.S. IPO transaction. A full-service investment bank has been selected, via an RFP, as the investment advisor and the underwriter. The lead banker is a personal friend of the CEO and is supporting both activities. The investment bank recommended $29 as the offer price. The stock closed at $31 after its first day of trading. Why would the SEC be concerned?

Article 4 of the Uniform Commercial Code (UCC) refers to a company's duty to report unauthorized payments or alterations within how many days of statement availability?

The actions taken by a company regarding crisis management, alternative operating procedures, and communications are referred to as:

The shares of a large East European mining company have been recently listed on the New York Stock Exchange. The company hired a compliance officer to ensure that the company meets or exceeds the laws that govern listed companies in the United States. Which of the following recommendations is required?

Which of the following is an advantage of a centralized treasury function?

Since inception, an automobile manufacturer receives all of its parts from the leading industry supplier. What type of risk will the company reduce if it uses an additional distributor?

Given the information in the data set, what is the earnings credit for January?

A corporation is considering utilizing ACH transactions for its large value transfers, as opposed to wire transfers. Which of the following would MOST LIKELY deter the corporation from implementing this change?

A U.S. company has a secured committed line of credit of $5.5 million and has an available balance of $4 million. The company successfully transmitted a $5.5 million wire transfer instruction out to the bank via SWIFT. The bank contacted the company and informed it that the wire transfer would not be processed. What is the MOST LIKELY reason the bank gave the company?

What is the Weighted Average Cost of Capital for XYZ Company, assuming the following:

The pre-tax cost of long term debt is 8%

The cost of equity is 11%

The marginal tax rate is 33%

Total liabilities = $75,000

Long term debt = $50,000

Owners equity = $75,000

A long-term treasury department employee notices that the director of internal audit has the authority to process payment proposals. The employee notices that a $1,000 transfer was made to a vendor with the director's log in. What laws will ensure that the treasury department employee will not suffer retribution if management is notified of this transaction?

Which of the following will MOST LIKELY be affected when a company changes its terms from net 30 to 2/10 net 30?

Corporate governance for publicly traded U.S. companies includes:

Pricing distortions, limited risk-sharing options, and capital controls are characteristics of:

A positive pay service is one where the bank:

An investor is interested in acquiring ownership in a firm while ensuring predictable timing and amount of cash flow. Which instrument should the investor choose?

Which of the following is a service typically provided by an investment custodian?