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AFP CTP Exam
Certified Treasury Professional (Page 19 )

Updated On: 19-Jan-2026
Page 19 of 188
PDF with 1076 Questions

When a paper check is converted to an electronic form:

  1. the payment becomes irrevocable and unconditional.
  2. it falls under the rules of Regulation E.
  3. the source document is always returned to the originator.
  4. it retains its status as a check.

Answer(s): B



BF Company, a manufacturer of food products, reported financial information shown in the Exhibit for the end of the year. BF Company is subject to covenants in its commercial paper program. It is in compliance with which of the following?

  1. Maximum long-term debt to capital of 52.5%
  2. Minimum working capital of $10,000
  3. Maximum dividends of 50% of net income
  4. Minimum cash flow to total debt of 45%

Answer(s): A



A commercial paper issuer who repays investors earlier in the day than it receives funds from new investors often creates which of the following?

  1. Collected overdraft
  2. Daylight overdraft
  3. Disbursement float
  4. Dual balances

Answer(s): B



A United States company must remit a dollar royalty payment to its Japanese subsidiary. Cash settlement of the payment would typically be made by which of the following?

  1. SWIFT
  2. ACH
  3. CHIPS
  4. Giro system

Answer(s): C



A company may choose to outsource some of its cash management processes to:

  1. better protect its assets.
  2. increase netting and pooling opportunities.
  3. reduce external fraud.
  4. more easily monitor its banks’ creditworthiness.

Answer(s): A



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