CTP AFP Certified Treasury Professional Free Practice Exam Questions (2025 Updated)

In developing an operating budget, the first and MOST critical step is?

From a buyer’s perspective, which of the following types of float would be eliminated if checks were replaced by electronic payment methods?

A company hires an investment firm to fully underwrite a new stock issuance. Which of the parties carries the MOST risk?

ASC Topic 815 (FAS 133) is applicable when accounting for which of the following?

A company is evaluating a project. What is the appropriate discount rate that it should use if its marginal tax rate is 34%, its capital structure is 40% common equity, and 60% debt. Its cost of equity is 10%, and its average cost of debt is 4%?

A public company’s risk profile is currently in balance. The management’s mission statement is to minimize stock devaluation. However, it is forecasting a need for working capital in the short term. Which of the following solutions would BEST assist management in accomplishing its mission?

A real estate development company has excess cash that it would like to invest in one of its properties:

Property A has shown an ROI of 40%, a residual income of $25,675, and an EVA of $32,678.

Property B has shown an ROI of 45%, a residual income of $27,635, and an EVA of $29,523.

Property C has shown an ROI of 55%, a residual income of $22,658, and an EVA of $30,678.

Property D has shown an ROI of 52%, a residual income of $19,675, and an EVA of $31,523.

In which property should the company invest?

The accounting requirement that a product’s selling costs be recorded in the same period as the product’s revenue is recorded, regardless of when the cash is paid, is an example of the:

The fixed costs to manufacture widgets are estimated to be $54,000. The benefit (sales) of a widget is estimated to be $6.78 per unit, and the variable costs are estimated at $4.48 per unit. What is the estimated break-even point in units for the manufacture of widgets (rounded to the nearest unit)?

Which one of the following ties a user’s private key to a user’s public key?

In which of the following instances does the clientele effect come into play?

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?

When estimating the cost of capital, which of the following financial resources would probably NOT be included in the cost of capital calculation?

A foreign company could raise capital in the United States using an:

The right of stockholders to purchase, on a pro-rata basis, any new shares issued by the company is referred to as:

A call option for a company has an exercise price of $50. The stock is currently trading at $60. At maturity, what should an investor who paid $3 for the option do?

Company XYZ has determined that its weighted average cost of capital is 12.5%. The capital structure of the company is made up of 75% equity and 25% debt. The before-tax cost of debt is 10%. Given a tax rate of 34%, what is XYZ's cost of common stock?

Which of the following is subject to transaction exposure?

Convertible securities consist of preferred stock anD.

Which of the following is NOT a key area to consider when establishing treasury policies?

Which of the following instruments simplifies the paperwork connected with loans that have multiple advance features?

Which of the following trade payment methods virtually eliminates the seller's credit risk?

A bank issues a letter of credit (L/C) and receives a request for payment under the L/C. The buyer notifies the issuing bank not to make payment because there is a dispute over the quality of the merchandise. However, the documents received fully comply with the terms of the L/C. Which of the following statements is true?

Financing decisions in a budget are used to construct all of the following pro forma financial statement components EXCEPT:

What is the PRIMARY issue that management needs to consider when determining capital structure?

The treasury management department of a company hires a consulting firm to provide research on how other companies in the industry have structured their treasury operations. This is an example of which practice?

What is the MOST appropriate rate used as the discount rate in calculating NPV?

A company has large, ongoing short-term financing requirements with a maximum horizon of 250 days. It has a good credit rating and would like to use the least expensive source of short-term debt to finance its needs. The Treasurer might recommend which of the following?

An airline wants to lock in the price of the jet fuel it needs to purchase to satisfy the peak in-season demand for travel. The airline wants to manage its exposure to fluctuations in fuel prices. What type of exposure is this?

Treasury policies should be approved by the:

Company X has a rating that is below investment grade. The treasurer would prefer to use commercial paper for its short-term financing needs and has a commitment from its bank to provide a standby letter of credit. What costs would be associated with this process?

Some treasury management systems are capable of initiating investment purchases and loan drawdowns automatically. The automating of these transactions is related to which of the following treasury management functions?

A buyer receives an invoice from a supplier that offers discount terms of 3/10, net 60. What is the effective cost of discount?

A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee. This management fee may need to be:

The goal of investor relations is to:

Today’s modern cash management systems would include which of the following?

Which of the following is a KEY operational advantage of short-term debt?

The measurement of the significance of any loss exposure depends on:

When projecting the closing cash position, a cash manager must estimate which of the following?