AFP AFP Certification CTP New Questions

Certified Treasury Professional Questions and Answers

Question 37

What type of insurance provides payments to an organization if it is unable to continue operations for some period due to an unforeseen event?

Casualty

Property

Difference in conditions

Business interruption

Question 38

Under the strict cash basis of accounting, revenue is recorded when:

the funds are disbursed.

sales agreements are finalized.

the funds are received.

purchase orders are confirmed.

Question 39

The PRIMARY difference between defined benefit and defined contribution pension plans is whether the employee or the employer:

receives the tax reduction benefits of the plan.

decides which mutual funds are included in the plan.

bears risk of a shortfall of the investment results in the plan.

hires investment managers for the plan.

Question 40

The before-tax cost of long-term debt is 10% and the cost of equity is 12%.

The marginal tax rate is 35%. The company's weighted average cost of capital is:

6.3%.

8.3%.

10.6%.

11.3%.