Free CTP Exam Braindumps (page: 25)

Page 24 of 234

What is the MOST appropriate rate used as the discount rate in calculating NPV?

  1. Marginal cost of capital
  2. IRR
  3. Cost of debt
  4. Internal transfer rate

Answer(s): A



What kind of budget forecasts the cost for investing activities?

  1. Operating budget
  2. Sales budget
  3. Maintenance budget
  4. Capital budget

Answer(s): D



In developing an operating budget, the first and MOST critical step is?

  1. Get management approval.
  2. Generate a sales budget.
  3. Establish cost allocations.
  4. Determine capital structure.

Answer(s): B



What must be measured and monitored to ensure that a company has adequate liquidity?

  1. Net receivables
  2. Stock price
  3. Short-term borrowing obligations
  4. Net working capital

Answer(s): D






Post your Comments and Discuss AFP CTP exam with other Community members:

CTP Exam Discussions & Posts