AFP CTP - Certified Treasury Professional Exam
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Total 932 questions
Question #1 (Topic: Topic 1)
Which of the following are important uses of variance analysis in comparing actual cash
flows with projected cash flows?
I. Identifying unanticipated changes in inventory
II. Enhancing short-term investment income
III. Validating a capital budget
IV. Identifying delays in accounts receivable collections
flows with projected cash flows?
I. Identifying unanticipated changes in inventory
II. Enhancing short-term investment income
III. Validating a capital budget
IV. Identifying delays in accounts receivable collections
A. I and II only
B. I and IV only
C. II and IV only
D. I, II, III, and IV
Answer: B
Question #2 (Topic: Topic 1)
An instrument that gives the right to buy a stated number of shares of common stock at a
specified price is known as:
specified price is known as:
A. an equity warrant
B. a put option
C. a zero coupon bond
D. a subordinated debenture
Answer: A
Question #3 (Topic: Topic 1)
A company plans to issue additional equity within the next 12 months but needs to issue
debt at a low interest rate now. Which of the following instruments would BEST meet this
objective?
debt at a low interest rate now. Which of the following instruments would BEST meet this
objective?
A. Convertible bonds
B. Private placement issue
C. Preferred stock
D. Subordinated debentures
Answer: A
Question #4 (Topic: Topic 1)
An arrangement in which a borrower makes periodic payments to a separate custodial
account that is used to repay debt is known as a:
account that is used to repay debt is known as a:
A. sinking fund
B. balloon payment
C. mortgage
D. zero-coupon bond
Answer: A
Question #5 (Topic: Topic 1)
Which of the following instruments simplifies the paperwork connected with loans that have
multiple advance features?
multiple advance features?
A. Master note
B. Banker's acceptance
C. Indenture agreement
D. Note purchase agreement
Answer: A
