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AFP CTP Exam
Certified Treasury Professional (Page 5 )

Updated On: 19-Jan-2026
Page 5 of 188
PDF with 1076 Questions

Under the strict cash basis of accounting, revenue is recorded when:

  1. the funds are disbursed.
  2. sales agreements are finalized.
  3. the funds are received.
  4. purchase orders are confirmed.

Answer(s): C



An accounts receivable manager has been asked to accelerate cash into her company by offering trade discount terms to its customers. Her company's cost of capital is 11%. If she offers terms of 2/10, net 30 on a $50,000 invoice, what is the present value to the company if the customer accepts the discount and pays early?

  1. $48,852
  2. $48,366
  3. $48,121
  4. $47,996

Answer(s): A



The seller’s cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30. What is the seller’s net benefit (loss) if the buyer takes the discount and pays by day 10?

  1. $3,986.89
  2. ($3,986.89)
  3. $2,688.93
  4. ($2,688.93)

Answer(s): D



ACCOUNTS RECEIVABLE AT THE END OF MARCH

On the basis of the accounts receivable balance pattern above and April sales of $600, the cash flow forecast for April is:

  1. $440.
  2. $715.
  3. $875.
  4. $925.

Answer(s): A



On a company’s financial statements, an increase in accounts receivable is reflected as a(n):

  1. decrease in current assets.
  2. increase in current liabilities.
  3. source of cash on the cash flow statement.
  4. use of cash on the cash flow statement.

Answer(s): D



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