AFP CTP Practice Exams
Last updated on Oct 23,2026- Exam Code: CTP
- Exam Name: Certified Treasury Professional
- Certification Provider: AFP
- Latest update: Oct 23,2026
Company XYZ is a manufacturer of industrial equipment and has enjoyed a large percentage increase in profits from a small increase in revenues. Sales recently plummeted resulting in steep decline in profitability.
Which of the following BEST describes the cost structure of the company?
- A . Low contribution margin
- B . High financial leverage
- C . Low variable costs
- D . High operating leverage
Company XYZ is a manufacturer of industrial equipment and has enjoyed a large percentage increase in profits from a small increase in revenues. Sales recently plummeted resulting in steep decline in profitability.
Which of the following BEST describes the cost structure of the company?
- A . Low contribution margin
- B . High financial leverage
- C . Low variable costs
- D . High operating leverage
The Treasury Department of ABC Corporation has been working hard to prevent external fraud from impacting its operating bank accounts. Recently, they implemented protective services on their disbursement accounts. This morning, the treasury analyst realized that an expected sales tax payment to the state of Maryland had not occurred. The analyst knew that it had been successfully initiated yesterday.
Which service used by the corporation may need to be adjusted to pay the state of Maryland?
- A . ACH filter
- B . Positive pay
- C . BAI reporting
- D . Payee verification
A review of a company’s risk management strategy would include all of the following EXCEPT:
- A . commodity price forecast.
- B . use of swaps.
- C . forfaiting.
- D . market volatility.
An analyst at Davis Company uses the tax payment (TXP) banking convention for payment of state taxes. The analyst is preparing to pay $650,000 in taxes to the state where Davis Company is domiciled.
What payment method will the analyst use to make the tax payment?
- A . ACH Credit
- B . Fedwire Credit
- C . Certified Check
- D . Multiple Drawee Check
Check MICR line information includes which of the following?
I. Bank of deposit identification number
II. Payee bank identification number
III. Federal Reserve bank code
IV. Payor’s account number
- A . I only
- B . III and IV only
- C . II, III, and IV only
- D . I, II, III, and IV
The issue of corporate governance in publicly traded companies arises from:
- A . the separation of shareholder ownership and management control.
- B . the conflict between the interests of bond holders and equity holders.
- C . the secrecy surrounding the proceedings of board of directors meetings.
- D . the inherent conflict of interest that exists when accounting firms are paid to provide audit services.
Racklyn Paint Company, a new paint and construction company, has vendor payables of $2 million due periodically over the next 3 months; payroll payable to its crews of $500K each month; a mortgage of $4.4 million with a fixed rate of 6.0%; and an equipment loan of $5 million with a bank at a 30-day LIBOR plus 150 bp payment of $100K due monthly. Racklyn receives their first contract valued at $12 million with half of the contract value due at the time of contract and final payment upon completion. Racklyn expects the job to last 6 months.
Which option would be the BEST use of Racklyn Paint Company’s cash?
- A . Prepay a portion of the equipment loan to minimize interest rate risk.
- B . Pay current payables and invest any excess cash in a money market account earning 1.5%.
- C . Pay off the mortgage and invest remaining funds in a 6-month CD at 2.5%.
- D . Invest $4 million in a CD at 2.5% for 3 months.
What is the MOST appropriate definition of working capital?
- A . Current liabilities plus equity
- B . Current assets plus equity
- C . Current assets minus current liabilities
- D . Current assets minus fixed assets
A consumer is presented with payment options from a merchant when making a purchase. The consumer does not wish to share any information that could be later used in identity theft or fraud, while the merchant requires guaranteed payments within 24 hours with no NSFs or declined payments.
Which of the following options would suit both the consumer and the merchant?
- A . NACHA’s Secure Vault PaymentsTM
- B . Credit card payment
- C . Direct debit
- D . E-check