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
What is the PRIMARY issue that management needs to consider when determining capital structure?
- A . Maintaining control of ownership
- B . Complying to rating agency and lender restrictions
- C . Using common stock as a source of funds
- D . Determining the mix of debt versus equity
Which of the following business practices does NOT comply with the Uniform Commercial Code?
- A . A company reconciles its bank statements within 30 days of receipt.
- B . A company receives a check marked "paid in full" and disputes it 120 days later.
- C . A bank exercises ordinary care when it examines signatures on checks received.
- D . A bank elects to return stale-dated items.
A treasurer’s role in budgeting is primarily to do which of the following?
- A . Manage short term assets and liabilities.
- B . Monitor foreign exchange risk.
- C . Manage shareholder equity.
- D . Analyze project profitability.
Company XYZ had the following sales over the last 5 years:
The company raised funds to invest in its operations. Considering the company’s growth, it is interested in future options that will allow it to maintain its debt level and keep debt costs low. The company is not concerned about changes to the working capital structure.
Which security did the company issue?
- A . Unsecured bond
- B . Bond with an equity kicker
- C . Zero-coupon bond
- D . Convertible security
Why would a company establish a short-term credit facility?
- A . Short-term interest rates are expected to rise.
- B . The company would like to improve bank relationships.
- C . Cash shortages are being forecasted due to seasonality.
- D . There is an anticipated failure of the company’s main depository bank.
QRT Corporation uses exponential smoothing in its cash flow forecasting model.
Five days are used to calculate the moving average forecast.
If the value of the smoothing constant is .60, what is the exponential smoothing forecast for day 7?
- A . $2,000,000
- B . $2,052,000
- C . $2,060,000
- D . $2,400,000
Following the latest round of cost-cutting measures at ABC Corporation, the Treasury Department retained a headcount of 2 individuals. While the analyst was out sick, she gave her password to her Manager so that payments could be released via the bank’s wire transfer system. The Manager sent 3 wires out with incorrect banking instructions. The problem was not identified until the angry suppliers called several weeks later demanding payment. The corporation has not yet recovered the $130,000 sent to erroneous accounts.
In this instance, which control failed for ABC Corp.?
- A . Three-way matching
- B . Segregation of duties
- C . Reconciliation of the bank statement
- D . Security within the bank’s wire system
Company A and Company X are small companies doing business with only one bank. Company A has monthly sales of approximately $1.1 million and Company X has sales of $750,000. Typically, Company A holds daily available cash balances in the range of $175,000 to $250,000 and Company X holds $90,000 to $125,000.
Which of the following can be said of the cash management practices of both companies?
- A . Company X has more counterparty risk than Company A.
- B . Company A has more supplier risk than Company X.
- C . Company A has more financial institution risk than Company X.
- D . Company X has more credit risk than Company A.
Which of the following is considered a financing decision?
- A . Issuing medium-term bonds or preferred stock
- B . Comparing risk and return of projects
- C . Allocating capital among different projects
- D . Distributing or retaining current earnings
On the basis of the information above, what level of net collected balances is necessary to compensate a bank for $1.00 worth of services?
- A . $126
- B . $154
- C . $157
- D . $159