Ctp-5 Practice Test Pdf Apr 2026

If you meant a different CTP-5 (e.g., a specific software certification or a different industry), please provide the full name. Otherwise, this content reflects the structure. CTP Practice Test PDF: 50 Sample Questions & Rationales Target Audience: Corporate Treasury Professionals, Finance Managers, FP&A Teams Exam Body: Association for Financial Professionals (AFP) Content Areas: Cash & Liquidity Management, Capital Markets, Risk Management, Working Capital Section 1: About the CTP Exam (Cheat Sheet for your PDF) Before diving into questions, include this summary in your PDF:

A ($2M surplus) Rationale: Net = ($10M + $15M - $18M) = $7M available. Subtract $5M reserve = $2M surplus liquidity.

C Rationale: DSO = (Accounts Receivable / Credit Sales) × 365. Lower DSO means faster collection.

C Rationale: Safety stock = 2 × MAD = 2 × $500,000 = $1,000,000. Domain 4: Corporate Finance & Working Capital Q7. Which ratio best indicates how efficiently a company uses its receivables? A) Current Ratio B) Debt-to-Equity C) Days Sales Outstanding (DSO) D) Inventory Turnover Ctp-5 Practice Test Pdf

A treasurer uses a forecast error analysis and finds a Mean Absolute Deviation (MAD) of $500,000. If the company holds a buffer of 2x MAD, what is the required safety stock of cash? A) $250,000 B) $500,000 C) $1,000,000 D) $2,000,000

| Feature | Detail | | :--- | :--- | | | 170 (120 scored + 50 pretest) | | Time Allowed | 4 Hours | | Passing Score | 300-500 scale (approx 70%) | | Key Domains | 1. Treasury Operations (25%) 2. Cash & Liquidity (20%) 3. Risk Management (15%) 4. Corporate Finance (15%) | Section 2: Sample Practice Questions (CTP-5 Style) Domain 1: Treasury Operations & Controls Q1. A company uses a Zero Balance Account (ZBA) structure. At the end of the day, what is the primary benefit for the master account? A) Increased interest income on all subsidiary balances B) Elimination of all wire transfer fees C) Consolidation of funds for investment or debt reduction D) Automatic approval of credit lines

C Rationale: The company needs to buy euros in the future. A long forward contract locks in the exchange rate today, eliminating the risk of a stronger euro. If you meant a different CTP-5 (e

B Rationale: Lockbox services allow customers to send payments to a PO Box; the bank processes checks faster. Remote capture digitizes checks for quicker clearing. Domain 3: Risk Management (FX & Interest Rate) Q5. A US company will pay €1,000,000 to a German supplier in 90 days. The CFO fears the euro will strengthen against the dollar. Which hedge is most direct? A) Buy a call option on USD/EUR B) Buy a put option on EUR/USD C) Enter a long forward contract on EUR/USD D) Sell a futures contract on EUR

C Rationale: ZBAs sweep funds from subsidiary accounts to a master account, allowing centralized control and maximizing investment opportunities or reducing overdrafts.

Which internal control best mitigates the risk of a rogue employee initiating a fraudulent wire transfer? A) Requiring manager approval for all wires above a de minimis threshold B) Reconciling bank statements only at year-end C) Using only physical signatures for all payments D) Granting the same employee authority to initiate, approve, and reconcile wires Subtract $5M reserve = $2M surplus liquidity

A company issues commercial paper (CP). What is a typical requirement for CP issuance? A) Secured by physical assets B) A committed bank backup line of credit C> A maturity longer than 5 years D> Approval from the SEC for every issuance

A firm wants to accelerate check collections from customers in rural areas. Which service is most effective? A) Controlled Disbursement B) Lockbox with remote capture C) Zero Balance Account D) Positive Pay