AFP CTP - Certified Treasury Professional

Which communication protocol increased standardization for information reporting details improving on BAI2?

A company with operations throughout Europe uses banks that do not provide a full range of local banking services. What would be the BEST approach to concentrate cash?

Which of the following is an example of a passive investment strategy?

A company is considering investing in an overseas project that requires additional short-term funding from external parties. Before giving approval to the project, the CFO would like to know how the company's current liabilities are covered by its current assets for Year 2. Using the data set, calculate the quick ratio.

XYZ Company's cash manager is evaluating cash concentration transfer options. The company has an 8% cost of funds and $50,000 in average daily field cash receipts. The wire transfer results in the transfer of funds one day faster. Which of the following options correctly ranks the transfer choices from most cost-effective to least cost-effective?

1. Electronic depository transfer costing $1.00

2. Electronic depository transfer costing $2.50

3. Wire transfer costing $8.00

4. Wire transfer costing $15.00

An investment firm wants to add a new commercial paper issuer to its program for one of its money market funds. The investment policy states that an analysis to evaluate and assess the probability that the issuer might default needs to be performed on an annual basis. This policy was established to mitigate which risk?

Which of the following describes the purpose of a request for proposal?

Merchant XYZ has $200,000 in sales for the month of December, 60% in cash and the remaining is divided equally between checks and credit cards. One percent of the credit cards were charged back during the month of January. What is the value of sales received by the merchant?

ABC Company, a U.S. company, has an overseas customer, XYZ Inc., who wants to purchase $3.1 million of equipment from ABC Co. XYZ Inc. wants to structure payment by paying 10% at time of order, 40% at time of shipment and the remaining 50% at time of receipt of the equipment. The last time XYZ Inc. purchased equipment from ABC Co. they never paid the final 50%, claiming the equipment did not work properly. Which of the following can ABC Co. use for this transaction to guarantee payment?

When a company creates future receivables and/or payables that are denominated in a currency other than its home or functional currency it is faced with:

On the basis of the information above, what level of net collected balances is necessary to compensate a bank for $1.00 worth of services?

Which of the following objectives of treasury management refers to a company’s ability to meet current and future financial obligations in a timely, efficient, and cost-effective manner?

A multinational corporation has a successful subsidiary in a country that taxes cross-border dividend payments at 72%. Collections on accounts receivable average 90% per month, and the average rate on local government bond investments is 2.5%. What would be the BEST method for the company to repatriate local profits?

A small group of investors is purchasing a company using a large amount of debt. This group is intending to sell off pieces of the acquired company to other firms that it believes can take advantage of potential synergies. What is this type of a transaction more specifically known as?

A company that is considering using a central lockbox for collections has conducted an initial study and determined the following:

What will be the annual net dollar benefit to the company if it uses a lockbox?

A U.S. company is selling product for US$10,000 to a Canadian company with payment in Canadian dollars. The exchange rate has been booked at C$1.45/US $1 for payment upon delivery in 15 days. The Canadian dollar is forecasted to weaken within this period. This is an example of A.

A company that has facilities in different states and wants to control funding and facilitate check cashing would use which of the following?

A disclaimer opinion is required on a set of financial statements when:

If the spot foreign exchange rate and the forward foreign exchange rate are the same between two countries, which of the following is implied?

ABC company has a significant number of customers who are mainly consumers making monthly installment payments. Which one of the following types of lockbox would be the MOST appropriate for ABC to use?