CTP Exam Dumps - Certified Treasury Professional

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Question # 73

Which of the following are basic security issues to be considered in evaluating a treasury management system?

I. Data recovery

II. Anti-virus protection

III. Database access controls

IV. Data integration

I and II

III and IV

I, II, and III

I, III, and IV

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Question # 74

The company's monthly credit sales are in Table 1 and its receivables collection pattern is in Table 2. If this company wishes to achieve a second quarter (April-June) DSO of 60 days, what would its ending accounts receivable balance need to be?

Assume a 90-day quarter.

$666,667

$1,333,333

$1,500,000

$3,000,000

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Question # 75

True statements about the open account method of trade payment include which of the following?

I. A bank guarantees payment.

II. It is the most common type of trade credit.

III. A periodic credit review of each customer is required.

IV. The customer makes equal monthly payments.

II only

I and IV only

II and III only

I, III, and IV only

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Question # 76

A new retail chain has decided to offer 3 payment methods: cash, cards and checks. It was determined that card payments would be the biggest sales driver and projects have been scheduled accordingly. To be in line with this strategy, which of the following should be the priority?

Marketing announcement of card acceptance

Acceptance of closed-loop credit cards

Accounting set-up for card acceptance

Becoming PCI DSS compliant

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Question # 77

The ACH system eliminates float because the:

transactions are value-dated.

transactions are initiated electronically.

receiving and originating institutions settle simultaneously.

Fed charges back the cost of float.

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Question # 78

XYZ Corporation is presently a short-term borrower and uses a revolving line of credit with an interest rate of 7%. The Treasurer would like to reduce interest expense and increase liquidity without renegotiating the line of credit. Which of the following projects should the Treasurer support in order to achieve this objective as quickly as possible?

Store operations believes that an increase in inventory levels will raise sales as the corporation eventually becomes known for its wide selection.

Purchasing is trying to extend terms from net 30 to net 60 with one of their primary vendors. The vendor will agree if XYZ concentrates purchases with them.

Accounts receivable is spending capital to improve its collection system. With the faster collections that will result, it anticipates recovering the outflows over a two-year period.

One large store is being remodeled. When complete, it should generate sufficient additional sales within one year to cover the capital expenditure and produce a positive return on investment.

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Question # 79

When establishing a retail collection system that accepts consumer debit cards, a company must comply with which Federal Reserve regulation?