AFP CTP Exam
Certified Treasury Professional (Page 17 )

Updated On: 19-Jan-2026

Which of the following is a disadvantage of e-commerce?

  1. Reduced collection float
  2. Reduced disbursement float
  3. Reduced accounts receivable cycle
  4. Reduced inventory cycle

Answer(s): B



Companies implement EDI in order to realize which of the following benefits?

I). Decreased error rates
II). Decreased order lead time
III). Improved productivity
IV). Improved cash forecasting

  1. I and II only
  2. I, III, and IV only
  3. II, III, and IV only
  4. I, II, III, and IV

Answer(s): D



All of the following are an EDI benefit EXCEPT:

  1. improved productivity.
  2. lower error rates.
  3. improved cash forecasting.
  4. lower start-up costs.

Answer(s): D



A company issues $5 million of commercial paper at a discount for 60 days. The interest cost is
$85,000. The backup line fee for this transaction is $2,000, and the dealer fee is $1,000. What is the annual interest rate?

  1. 10.56%
  2. 10.71%
  3. 10.74%
  4. 10.89%

Answer(s): D



A company wishes to monitor and control office expenses incurred by its employees. Which of the following offers the BEST method of providing the employees freedom to choose different vendors while maximizing spending control?

  1. Stored value cards
  2. Purchasing cards
  3. Travel cards
  4. Debit cards

Answer(s): B



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