CTP Premium Exam Engine – Download Free PDF Questions [Q58-Q78]

NO.58 A deck furniture supply company maintains a large inventory during the summer sales season. One of the PRIMARY benefits of this approach is that the company avoids which of the following costs?

NO.59 At the end of the year, ABC Company’s actual revenue is $85,000,000 versus budget revenue of $90,000,000. Actual operating expenses are $20,000,000 versus budget operating expenses of $22,000,000. Budget variance analysis would indicate a(n):

NO.60 A company is looking to improve its collection rate of returned checks. If the company implements re-presented check entry (RCK) with its bank, it might see a reduction in what type of returned items?

NO.61 Financial risk management requires monitoring changes in which of the following?
I. Interest rates
II. Foreign exchange rates
III. Commodity prices
IV.
Cost of insurance

NO.62 A high-yield, non-investment-grade security is commonly referred to as which of the following?

NO.63 Which agency implements monetary policy through purchases and sales of treasury securities?

NO.64 The amount of the discount required to renegotiate credit terms in EDI depends on which two of the following?
I.Present value impact of the timing change II.Credit risks involved
III.Revolving credit agreements
IV.Transaction costs savings

NO.65 Following the latest round of cost-cutting measures at ABC Corporation, the Treasury Department retained a headcount of 2 individuals. While the analyst was out sick, she gave her password to her Manager so that payments could be released via the bank’s wire transfer system. The Manager sent 3 wires out with incorrect banking instructions. The problem was not identified until the angry suppliers called several weeks later demanding payment. The corporation has not yet recovered the $130,000 sent to erroneous accounts. In this instance, which control failed for ABC Corp.?

NO.66 Company XYZ uses exponential smoothing to forecast its daily lockbox receipts. With the help of a statistical computer program, the company has determined that the smoothing constant is 0.35.

Using the data in the table, what is the exponential smoothing forecast for Day 7 (rounded to the nearest whole $)?

NO.67 Which of the following should be considered in the design of a collection system for a supermarket or retail store that does not offer proprietary credit cards?
I.Coin and currency handling
II.Debit card acceptance
III.Retail lockbox
IV.Third-party credit cards

NO.68 When a project has an initial cash outflow with cash inflows in subsequent years, what decision model is most applicable to use to evaluate the adequacy of the project?

NO.69 A company may choose to use a derivative to reduce risk on which of the following types of exposure?
I. Currency
II. Interest rate
III.
Commodity price

NO.70 A short-term bank line with $20 million of unused capacity and an investment in an overnight money market fund are both forms of which liquidity requirement?

NO.71 Equity section of Fisher, Inc. Financial Statement

If an investor paid $1,400.00 (excluding fees) for 75 shares of common stock, what was the market value of Fisher, Inc. at the time of purchase?

NO.72 A newly hired Treasurer must establish the organizational structure of the treasury department for ABC Corporation which is a publicly traded multinational organization with sales offices in over 50 countries. There are limited opportunities for trading and hedging activity. The first challenge is to identify the most appropriate structure for the treasury group that will provide control, visibility, economies of scale, and lower operating expenses. What structure should be chosen?

NO.73 Two months after a government overthrow, the new Minister of Industry and Culture took over the country’s largest steel company and compensated the owners at 50% of book value. What is the government’s action called?

NO.74 A company issues $5 million of commercial paper at a discount for 60 days. The interest cost is $85,000. The backup line fee for this transaction is $2,000, and the dealer fee is $1,000. What is the annual interest rate?

NO.75 Customers of an electronic trading firm are experiencing problems with the online trading platform. The company IT department discovered that although display of market data is in the proper place, there are no tags being used to populate specific information in the necessary fields. The company is MOST LIKELY experiencing a problem with:

NO.76 A put option gives the holder the right to:

NO.77 Company J is looking to perform an A/R cash analysis based on the following sales information:

60% of sales are collected within two months after sale. After three months, $135,000 of January’s sales were collected. What was the dollar amount of January’s sales collected in April?

NO.78 A lender is evaluating the creditworthiness of a company that has high levels of operating leverage. In determining the debt capacity of the company, the bank would MOST LIKELY prefer a: