AFP CTP Exam
Certified Treasury Professional (Page 21 )

Updated On: 19-Jan-2026

Which of the following credit terms would be MOST appropriate for a seasonal product that a manufacturer wants to sell to a retailer during the product's off-season?

  1. 2/10, net 30
  2. 2/10, prox 30
  3. 2/10, net 120
  4. 3/15, 2/30, net 45

Answer(s): C



Which of the following are reasons for companies to use controlled disbursement?

I). To obtain timely check presentment information
II). To enhance supplier relationships
III). To increase their available cash
IV). To improve their overall creditworthiness

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

Answer(s): A



Controlled disbursement notification times can be improved by which of the following?

  1. Increasing the use of multiple transit routing numbers
  2. Implementing a 2 P.M. presentment
  3. Implementing a high dollar group sort program
  4. Using Payor bank services

Answer(s): D



In developing treasury policies and procedures, which activity requires key controls to be in place?

  1. Revenue recognition
  2. Debt management
  3. Tax management
  4. Materials loss prevention

Answer(s): B



When a company must determine the optimal mix of long-term borrowings versus common equity, it is making which of the following types of corporate financial decisions?

  1. Capital structure
  2. Dividend
  3. Financing
  4. Investment

Answer(s): A



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