FREE Certified Treasury Professional MCQ Questions And Answers

Question 1

Which of the following market-traded derivative contracts poses the LEAST risk to the contracting parties in terms of counterparty risk?

Accepted Answer

exchange-traded options

Answer

interest rate swaps

Answer

over-the-counter options

Answer

currency forwards

Question 2

Which of the following General Accepted Accounting Principles (GAAP) fundamentals states that a company's expenses must be disclosed after the revenues coming from those expenses are disclosed?

Accepted Answer

The Matching Principle

Answer

The Full-Disclosure Principle

Answer

The Historical-Cost Principle

Answer

The Revenue-Recognition Principle

Question 3

What would the calculated Net Cash total for a certain company be if the Statement of Cash Flows for that company showed the following sums?

Accepted Answer

$505,000

Answer

$55,000

Answer

$510,000

Answer

$1,125,000

Question 4

Your business has been informed of three payments: the first, for $2,500, will be made right away; the second, for $1,700, will be made at the end of the first year; and the third, for $3,100, will be made at the end of the second year.  Your task is to determine how much the entire stream of payments (future value) will be worth at the conclusion of year two assuming an investment rate of 6%.  Keep in mind that the third payment won't be received in time for compounding.

Accepted Answer

$7,711.00

Answer

$10,468.10

Answer

$7,719.12

Answer

$4,268.10

Question 5

Which of the several investment analysis styles tries to evaluate both the best- and worst-case outcomes when various conditions are put on the variables in order to determine the worth or risk of a particular investment?

Accepted Answer

Scenario analysis

Answer

Simulation

Answer

Cost/benefit analysis

Answer

Sensitivity analysis

Question 6

Debt ratios are used to assess a company's level of debt, with the exception of:

Accepted Answer

Current ratio

Answer

Debt to tangible net worth

Answer

Total liabilities to total assets

Answer

Long-term debt to capital

Question 7

There are several ways to extend credit, EXCEPT:

Accepted Answer

open item

Answer

installment credit

Answer

open account

Answer

revolving credit