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Certified Treasury Professional Questions 456–460 (page: 93)

Updated On: 9-Feb-2026

All of the following are advantages of using traditional financial ratios for analysis EXCEPT:

  1. they can easily be computed from the information found in publicly available financial reports.
  2. they usually reflect accounting rather than economic values.
  3. they can be used to view historical trends and availability over time.
  4. they allow comparisons to be made between like companies.

Answer(s): B



The year-end income statement for a company is presented in Table 1. The balance sheet is presented in Table 2.



What is the company's return on equity?

  1. 26%
  2. 37%
  3. 65%
  4. 80%

Answer(s): C



Which of the following business practices does NOT comply with the Uniform Commercial Code?

  1. A company reconciles its bank statements within 30 days of receipt.
  2. A company receives a check marked "paid in full" and disputes it 120 days later.
  3. A bank exercises ordinary care when it examines signatures on checks received.
  4. A bank elects to return stale-dated items.

Answer(s): B



When establishing a retail collection system that accepts consumer debit cards, a company must comply with which Federal Reserve regulation?

  1. CC
  2. D
  3. E
  4. Q

Answer(s): C



A properly designed concentration system will potentially achieve which of the following results?

I). Increased authority to field offices
II). Increased investment income
III). Improved ability to take discounts
IV). Reduced dependence on third-party concentration vendors

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

Answer(s): C



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