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AFP Updated CTP Exam Questions and Answers by paloma

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AFP CTP Exam Overview :

Exam Name: Certified Treasury Professional
Exam Code: CTP Dumps
Vendor: AFP Certification: AFP Certification
Questions: 1076 Q&A's Shared By: paloma
Question 120

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

Options:

A.

I and II only

B.

I and III only

C.

II and III only

D.

I, II, and III

Discussion
Question 121

All of the following factors influence a company's decision to use electronic commerce EXCEPT:

Options:

A.

increased accuracy.

B.

increased inventory levels.

C.

increased information flow.

D.

redefined customer and supplier relationships.

Discussion
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Question 122

A company has a $300,000 credit line of which $200,000 was the average amount outstanding for the year. The terms of the loan include a 1/2 of 1% commitment fee on the unused portion, an interest rate of 10%, and a compensating balance requirement of 2% of the total credit line. The company's compensating balances are funded from credit-line borrowings.

If the company negotiates to eliminate the compensating balance requirement and the average borrowings remain at $200,000, the annual interest rate would be:

Options:

A.

10.00%.

B.

10.25%.

C.

10.31%.

D.

10.57%.

Discussion
Question 123

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?

Options:

A.

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

B.

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

C.

As a purchase, netted against retained earnings

D.

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

Discussion
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