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: Sep 09, 2025

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Question 1

ABC Company has recently moved away from paper-based invoicing systems and has begun implementing e-commerce solutions. Realizing that its e-commerce implementation may have a negative impact on the float of its trading partners, ABC can do which of the following to help address this concern?

A : ange the payment discount terms for the trading partners.

B : low the trading partners to use the company's e-commerce solution.

C : gotiate larger order quantities from the trading partners.

D : ree to a uniform data transfer protocol for all trading partners

Answer: A

Question 2

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 : an asset, recorded on the balance sheet at acquisition cost and depreciated

B : an asset, recorded on the balance sheet at purchase price and amortized

C : a purchase, netted against retained earnings

D : a purchase, recorded as an operating expense in the current period

Answer: A

Question 3

The issue of corporate governance in publicly traded companies arises from:

A : separation of shareholder ownership and management control.

B : conflict between the interests of bond holders and equity holders.

C : secrecy surrounding the proceedings of board of directors meetings.

D : inherent conflict of interest that exists when accounting firms are paid to provide audit services.

Answer: A

Question 4

What should a company’s senior management consider in their payment policies to eliminate the co-mingling of funds for payables, receivables and foreign exchange transactions?

A : quired control points

B : nk account structuring

C : yment laws and regulations

D : rticipants in the payment process

Answer: B

Question 5

In the event of bankruptcy and the subsequent liquidation of issuer's debt, in what order,

from first to last, will the following be repaid?

1.Senior secured debt

2.Senior subordinated debt

3.Junior secured debt

4.Junior debentures

A : 1, 2, 3, 4

B : 1, 3, 2, 4

C : 2, 1, 3, 4

D : 2, 1, 4, 3

Answer: B

Page: 1 / 187

Total 932 Questions | Updated On: Sep 09, 2025

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