Free AFP CTP Exam Questions

Become AFP Certified with updated CTP exam questions and correct answers

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Total 932 Questions | Updated On: Mar 05, 2026

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Question 1

The mix of long-term debt and equity refers to a company’s:

A : nancial leverage.

B : pital structure.

C : rrent ratio.

D : CC

Answer: B

Question 2

A U.S. company has a secured committed line of credit of $5.5 million and has an available balance of $4 million. The company successfully transmitted a $5.5 million wire transfer instruction out to the bank via SWIFT. The bank contacted the company and informed it that the wire transfer would not be processed. What is the MOST LIKELY reason the bank gave the company?

A : res exceeding $5 million cannot be transmitted using SWIFT.

B : bank imposed a guidance line of credit on the account.

C : company exceeded its compensating balance requirement.

D : bank refused funding on the company’s discretionary line of credit.

Answer: B

Question 3

Which of the following payment instruments can provide predictable collection float?

I.Wire transfer

II.Check

III.ACH

IV.Cash

A : I only

B : only

C : II, and IV only

D : III, and IV only

Answer: D

Question 4

Disbursement float includes which of the following three float time intervals?

A : il, processing, and availability float

B : il, invoicing, and availability float

C : il, processing, and clearing float

D : il, invoicing, and clearing float

Answer: C

Question 5

The “agency problem” refers to:

A : nagement’s use of a fiduciary agent for stockholders.

B : large and active institutional investor base acting on behalf of individual investors.

C : ockholders who allow management to take actions that will benefit management.

D : internal audit function reporting to the audit committee of the board instead of to management.

Answer: C

Page: 1 / 187

Total 932 Questions | Updated On: Mar 05, 2026

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