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: Jun 04, 2025

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Question 1

Company ABC needs external capital to finance a new product line. Its operating leverage is high, and its revolving credit agreement contains a ratings trigger. What will Company ABC MOST LIKELY do to finance its new product line?

A : ue convertible debentures

B : ue long-term notes.

C : ue common stock.

D : retained earnings.

Answer: C

Question 2

What is the correct sequence of the following disbursement float events, from first to last

step?

1. Check clears back to drawee bank account.

2. Check is encoded and enters the clearing system.

3. Depositor receives ledger credit.

4. Lockbox bank receives check.

A : 3, 2, 1, 4

B : 4, 2, 1, 3

C : 4, 2, 3, 1

D : 4, 3, 2, 1

Answer: C

Question 3

All of the following staff would be involved in the evaluation of an outsourced accounts payable solution EXCEPT:

A : internal auditor.

B : treasurer

C : controller.

D : credit manager.

Answer: D

Question 4

Measurement of a company's liquidity includes the calculation of all of the following EXCEPT:

A : rrent ratio.

B : h turnover.

C : turn on equity.

D : ick ratio

Answer: C

Question 5

If a bank has a 10% reserve requirement, a 31-day month, and an earnings credit rate of 6.5%, which of the following is the approximate level of collected balances required to support $1.00 worth of bank service charges?

A : $181

B : $199

C : $201

D : $206

Answer: C

Page: 1 / 187

Total 932 Questions | Updated On: Jun 04, 2025

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