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Certified Treasury Professional Questions 191–195 (page: 40)

Updated On: 9-Feb-2026

What is one chief advantage of issuing short-term securities in book-entry form?

  1. The securities cannot be transferred electronically.
  2. The physical exchange of certificates is required.
  3. Transaction clearing can be performed with ease and speed.
  4. Security registration is not required.

Answer(s): C



Which of the following is a source of short-term financing?

  1. Bond issuance
  2. Factoring of accounts receivable
  3. Issuance of common stock
  4. Retaining profits

Answer(s): B



A treasurer overhears several employees talking about selling their company stock before a pending deal impacts the stock negatively. What action should the treasurer take to control this behavior in the future?

  1. Report the employees to the SEC.
  2. Provide training on ethics and code of conduct.
  3. Contact the investor relations department.
  4. Contact the internal and external auditors.

Answer(s): B



An internal auditor discovers that employees can enter and approve their own wire transfers. This practice violates what internal control?

  1. Adequate segregation of duties
  2. Accurate reporting of cash transactions
  3. Appropriate monitoring of covenant compliance
  4. Proper authorization of investment transactions

Answer(s): A



An employer wishing to reduce operating income volatility would MOST LIKELY offer what type of retirement option to its employees?

  1. Defined contribution plan
  2. Defined benefit plan
  3. Retirement bonus plan
  4. Cash balance plan

Answer(s): A



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