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 good credit rating has which of the following effects on debt?
I. Improved marketability
II. Decreased cost of funds
III. Decreased maturity
IV. Increased dealer fees
- A . I and IV
- B . I and II
- C . II and III
- D . I, II, and III
Which of the following investment instruments would provide a company with the greatest liquidity and least risk?
- A . Certificate of deposit
- B . Commercial paper
- C . Certificate of participation
- D . Treasury bill
A company purchases a machine tool with an expected life of 3 years.
Under the accrual accounting method, the equipment would be treated in which of the following ways?
- A . As an asset, recorded on the balance sheet at acquisition cost and depreciated
- B . As an asset, recorded on the balance sheet at purchase price and amortized
- C . As a purchase, netted against retained earnings
- D . As a purchase, recorded as an operating expense in the current period
Merchant MNO’s sales for the day total $20,000. Fifty percent are credit cards, split between Card Red and Card Blue respectively, at 65% and 35% of the card volume. The average ticket is $50. Fees paid are 2% for Card Red and 2.5% for Card Blue and a fee of $0.05 per transaction.
What are the fees that MNO will pay to the issuing banks?
- A . $217.50
- B . $227.50
- C . $232.50
- D . $242.50
Which of the following is a characteristic of giro systems used in countries in Europe?
- A . They operate through their postal systems.
- B . They are primarily used for company-to-company payments.
- C . They do not replace checks for the payment of bills.
- D . They do not allow the use of direct debits and credits.
Which of the following clears international checks?
- A . Correspondent banks
- B . Fedwire
- C . SWIFT
- D . Check truncation
Which of the following statements is true about threshold concentration?
- A . Wire transfers are initiated on the basis of deposit information.
- B . Daily transfers are often needed to maintain balances at the desired level.
- C . Balances are set and funds above that level are transferred to the concentration bank.
- D . Balances are transferred to the concentration bank after reaching a predetermined level.
A company plans to perform an A/R cash analysis based on the following sales information:
60% of sales are collected within two months after the sale. After three months, $135,000 of January’s sales has been collected.
What was the percentage of January’s sales collected in April?
- A . 10%
- B . 30%
- C . 60%
- D . 90%
A retail brokerage firm is MOST like which one of the following types of financial institutions?
- A . Captive finance companies
- B . Factoring companies
- C . Investment banks
- D . Insurance companies
The renegotiation of trade payment terms in an e-commerce environment should include which of the following?
- A . Application of the payment to the accounts receivable system
- B . NACHA format chosen for the payments
- C . A bank that will process the payment
- D . Evaluation of payment clearing history