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Question 48

Companies in the U.S. with a nationwide over-the-counter/field bank collection and concentration system often deal with:

Options:

A.

few small financial institutions.

B.

one major banking institution with branch offices at all locations.

C.

many small financial institutions.

D.

one major bank with corresponding relationships.

Question 49

A company sells products to customers on credit, generating accounts receivable. The company uses the accrual accounting method. Once the company collects good funds from its customers, what is the impact on the financial statements of the company?

Options:

A.

Cash balance is not affected, and income is increased.

B.

Cash balance is increased, and income is decreased.

C.

Cash balance is increased, and income is not affected.

D.

Cash balance is increased, and income is increased.

Question 50

A telecommunications company receives a profit of $587,542 from its cellular phone production unit in the year after investing $962,870 in a new product line. What is the first year return on its original investment?

Options:

A.

56%

B.

58%

C.

61%

D.

64%

Question 51

A public corporation may value a defined contribution plan highly because it:

Options:

A.

allows the corporation to capture plan investment surpluses.

B.

allows proxy voting in favor of management.

C.

shifts investment shortfall risk to employees.

D.

defines allowed investments within the plan.

Page: 12 / 34
Exam Code: CTP
Exam Name: Certified Treasury Professional
Last Update: Nov 21, 2024
Questions: 932
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