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 customer buys a laptop for $850 and a CD for $13. Only items with sale price of $15 and greater are subject to value added tax (VAT).
Assuming VAT of 8.5%, how much tax does the customer incur at the point of sale?
- A . $72.25
- B . $73.36
- C . $722.25
- D . $922.25
Exhibit:
What is the price to earnings ratio for Company ABC?
- A . 3.88
- B . 7.50
- C . 8.33
- D . 10.00
Exhibit:
What is the price to earnings ratio for Company ABC?
- A . 3.88
- B . 7.50
- C . 8.33
- D . 10.00
A sinking fund is primarily used for which of the following purposes?
- A . To ensure that adequate funds are available to redeem the bond issue
- B . To provide interest distributions to bondholders
- C . To provide periodic principal reductions over the life of the bond
- D . To pay bond administration costs
A treasurer is monitoring the yield curve through a service provider (like Reuters) and notices that it is moving from downward sloping to upward sloping.
Based on this information, the treasurer should consider:
- A . a commercial paper program.
- B . a short-term borrowing facility.
- C . interest rate collars.
- D . a variable rate long term facility.
Three college roommates open a fast-food restaurant chain after graduation. They decide to offer a 401(k) plan to all of their 700+ employees and a defined benefit retirement plan for themselves and their six Group Vice Presidents.
If the company initially funds the defined benefit plan with $10 million and is in the 32% tax bracket, what is the after-tax cost of the funding?
- A . $3.2 million
- B . $6.8 million
- C . $10.0 million
- D . $13.2 million
A U.S. based multinational company is filing its U.S. tax return and notes that its U.K. subsidiary had pre-tax income equal to $1 million. The U.K. subsidiary paid an effective tax rate on this income of 40%.
If the U.S. tax rate is 34%, what will be the amount of the foreign tax credit on the U.S. tax return related to the U.K. income?
- A . $60,000
- B . $280,000
- C . $340,000
- D . $400,000
To strengthen outside auditor independence with regard to publicly held companies, the Sarbanes-Oxley Act requires that:
- A . employment of staff from companies’ accounting firms be approved in advance by the audit committees.
- B . companies change accounting firms for audit services at least every seven years.
- C . accounting firms supply audit work papers annually to the SEC for their clients.
- D . the lead audit partner and audit review partner be rotated every five years.
Which report is MOST LIKELY to be a current-day information report?
- A . Controlled disbursement totals
- B . Debit/credit transaction listing
- C . Loan transaction detail
- D . Multibank balance report
Company M operates a grocery distribution business on Main Street. As part of its business continuity plan, Company M intends to purchase insurance to cover the facility lease for its Main Street warehouse in the event it cannot operate for a period of time.
What type of coverage should Company M purchase?
- A . Cost reimbursement insurance
- B . Business interruption insurance
- C . General liability insurance
- D . Fiduciary insurance