Aug-2023 New Version CTP Certificate & Helpful Exam Dumps is Online
CTP Free Certification Exam Material with 932 Q&As
NEW QUESTION # 421
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?
- A. Wholesale
- B. In-house
- C. Retail
- D. Hybrid
Answer: C
NEW QUESTION # 422
What kind of budget forecasts the cost for investing activities?
- A. Capital budget
- B. Maintenance budget
- C. Operating budget
- D. Sales budget
Answer: A
NEW QUESTION # 423
When a subsidiary borrows money, the parent, sister subsidiary, or other entity is often used in order to:
- A. prevent a covenant violation.
- B. guarantee the obligations of the borrower.
- C. increase the return of a security.
- D. diversify the risk of the investment.
Answer: B
NEW QUESTION # 424
During a company's cash flow analysis review it discovers that for every 10 new customers it gains, there is an increase of 2% in its float costs associated with the payment methods it offers. If the company pursues faster collection methods for payments, resulting in greater availability of surplus cash with a correlating decrease in the need to issue commercial paper, what risk will the company mitigate?
- A. Settlement
- B. Liquidity
- C. Float
- D. Disbursement
Answer: B
NEW QUESTION # 425
Future treasury operations will be affected MOST significantly by consolidation of which of the following?
- A. Competitors
- B. Procurement cards
- C. Subsidiaries
- D. Commercial banking industry
Answer: D
NEW QUESTION # 426
A manufacturing company begins using just-in-time (JIT) inventory management. Which JIT-related payment process is MOST LIKELY to be implemented?
- A. Paid-on-production
- B. Fedwire
- C. Point of purchase
- D. Forward dated check
Answer: A
NEW QUESTION # 427
One reason for using a sale and lease-back arrangement in lease financing is to:
- A. create an infusion of cash into the company.
- B. account for income or costs in one period.
- C. eliminate off-balance sheet debt.
- D. benefit from tax advantages from depreciation.
Answer: A
NEW QUESTION # 428
What is this firm's residual income?
Revenues: $110,000
Expenses (including COGS and all taxes): $87,000
Internal rate of return: 8.5%
Capital Investment: $55,000
ROI: 8.0%
Cost of capital: 11%
- A. $18,600
- B. $16,950
- C. $16,500
- D. $18,325
Answer: B
NEW QUESTION # 429
The School of Cash Management is dealing with a large bank that has been highly rated by Moody's and S&P. The School has a purchasing card program in place and is not using a highly secure student registration data base. Both the School and the bank have highly automated payment processes. Based on the automation factor, the School should be MOST concerned about which of the following types of fraud exposure?
- A. Credit card fraud
- B. Wire fraud
- C. ACH kiting fraud
- D. Payroll fraud
Answer: B
NEW QUESTION # 430
Which of the following is a purpose of the Check 21 Act?
- A. Improve check imaging and archiving
- B. Grant legal status for digital signatures
- C. Facilitate check truncation
- D. Foster innovation in the ACH payment system
Answer: C
NEW QUESTION # 431
XYZ Bank would like to conduct some foreign exchange transactions with JKL Bank. JKL isn't the most liquid and could have some credit risk. XYZ Bank should suggest which of the following in order to eliminate risk?
- A. Straight-through processing
- B. Continuous Linked Settlement
- C. Forward rate contract
- D. Pre-authorized draft
Answer: B
NEW QUESTION # 432
Which of the following is NOT a method multinational companies (MNC) use to repatriate capital?
- A. Transfer pricing
- B. Dividends
- C. Management fees
- D. Internal factoring
Answer: D
NEW QUESTION # 433
Usually, corporations receiving dividends from another corporation can exclude 70 percent of dividend payments from income for tax purposes as long as the stock is owned for at least:
- A. 60 days.
- B. 90 days.
- C. 45 days.
- D. 30 days.
Answer: C
NEW QUESTION # 434
The MICR encoding on a check provides all of the following information EXCEPT:
- A. the payee bank's institutional identification number.
- B. the Fed district of the drawee bank.
- C. the dollar amount of the check.
- D. the payor's bank account number.
Answer: A
NEW QUESTION # 435
A company is starting a project to redesign its cash management information systems. What would be an important tool in this effort?
- A. Treasury operations manual
- B. Treasury workstation
- C. Cash application
- D. ERP software
Answer: A
NEW QUESTION # 436
The credit risk in the settlement of a Fedwire is borne by the:
- A. Federal Reserve.
- B. receiving company.
- C. receiving bank.
- D. sending company.
Answer: A
NEW QUESTION # 437
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