Free CTP Exam Braindumps (page: 33)

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Unrealized holding gains and losses arise when trading securities are:

  1. marked-to-market and are reported under current income.
  2. marked-to-market and are reported under retained earnings.
  3. offset by the gains and losses of the item being hedged.
  4. recorded on the anniversary date of the purchase.

Answer(s): A



A construction company just received a notification from its bank advising it of an altered dollar amount on a check. This notification is MOST LIKELY the result of:

  1. the use of positive pay.
  2. the use of controlled disbursement.
  3. automated reconciliation services.
  4. reverse positive pay.

Answer(s): A



When evaluating a FSP during the RFP process, a company should place a high value on a FSPs financial strength when the provider:

  1. is located in a remote location.
  2. holds assets for the company.
  3. processes high dollar value transactions.
  4. processes international transactions.

Answer(s): B



The first step in the financial institution and financial services provider (FSP) selection process should be:

  1. selecting a pool of available candidates.
  2. identifying the critical product or service specifications.
  3. establishing a grading mechanism.
  4. evaluating the cost of switching providers.

Answer(s): B






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