AFP CTP Practice Exams
Last updated on Oct 24,2026- Exam Code: CTP
- Exam Name: Certified Treasury Professional
- Certification Provider: AFP
- Latest update: Oct 24,2026
A company sells products to customers on credit, generating accounts receivable. The company uses the accrual accounting method.
Once the company collects good funds from its customers, what is the impact on the financial statements of the company?
- A . Cash balance is not affected, and income is increased.
- B . Cash balance is increased, and income is decreased.
- C . Cash balance is increased, and income is not affected.
- D . Cash balance is increased, and income is increased.
Which of the following investment instruments is a discount instrument?
- A . Banker’s acceptance
- B . Yankee CD
- C . Treasury note
- D . Municipal bond
All of the following are common consumer-to-corporate international payment mechanisms EXCEPT:
- A . giros.
- B . debit cards.
- C . CHIPS.
- D . smart cards.
All of the following are reasons to use a confirmed irrevocable letter of credit EXCEPT concern about:
- A . the buyer’s ability to pay.
- B . the ability to receive cross-border payments.
- C . foreign currency exposure.
- D . the stability of the buyer’s bank.
A multidivisional domestic company with centralized treasury decision-making can potentially utilize intra-company lending to:
- A . reduce the overall liquidity of the company.
- B . establish individual subsidiary borrowing facilities.
- C . source debt in different currencies.
- D . lower the overall cost of short term funds.
A company may choose to use a derivative to reduce risk on which of the following types of exposure?
I. Currency
II. Interest rate
III. Commodity price
- A . I and II only
- B . I and III only
- C . II and III only
- D . I, II, and III
Which of the following would be the most efficient method of reducing the number of cross-border payments between two units of a company?
- A . A pooling system
- B . A re-invoicing center
- C . A netting system
- D . A multicurrency account
Which of the following are important uses of variance analysis in comparing actual cash flows with projected cash flows?
I. Identifying unanticipated changes in inventory
II. Enhancing short-term investment income
III. Validating a capital budget
IV. Identifying delays in accounts receivable collections
- A . I and II only
- B . I and IV only
- C . II and IV only
- D . I, II, III, and IV
According to the Capital Asset Pricing Model, which of the following would increase the required rate of return, given a beta of 1?
- A . A decrease in the tax rate
- B . An increase in the T-bill rate
- C . A decrease in the expected market return
- D . An increase in the company’s stock price
Which of the following can be related to a company’s stock price?
- A . Economic Value Added
- B . Residual Income
- C . Return on Investment
- D . Operating Profit