101-200
NO.101 Underfunded pension obligations can be reduced by: A. an upward shift in the yield curve. B. higher benefit payments to retirees. C. immediate vesting in the defined contribution plan. D. higher premiums to the Pension Benefit Guaranty Corporation.
A
NO.102 A shareholder right found in many corporate charters is the preemptive right which provides: A. the right to purchase shares of new stock and maintain pro-rata ownership interest. B. the right to choose directors through cumulative voting. C. the right to prevent the company from setting certain board agenda items. D. the right of shareholders to choose the corporation's auditor.
A
NO.103 In an organization with personnel limitations, which of the following strategies should be considered to mitigate cash management system risk? A. Outsourcing B. Verification C. Matching D. Hedging
A
NO.110 A company has large, ongoing short-term financing requirements with a maximum horizon of 250 days. It has a good credit rating and would like to use the least expensive source of short-term debt to finance its needs. The Treasurer might recommend which of the following? A. Commercial paper with a backup line of credit B. Asset sales through factoring of receivables C. A committed line of credit with compensating balances D. A single payment note secured by marketable securities
A
NO.111 Establishing the authority to open bank accounts is the responsibility of: A. the board of directors. B. the CFO. C. the treasurer. D. the board of governors.
A
NO.112 A construction company just received a notification from its bank advising it of an altered dollar amount on a check. This notification is MOST LIKELY the result of: A. the use of positive pay. B. the use of controlled disbursement. C. automated reconciliation services. D. reverse positive pay.
A
NO.113 Unrealized holding gains and losses arise when trading securities are: A. marked-to-market and are reported under current income. B. marked-to-market and are reported under retained earnings. C. offset by the gains and losses of the item being hedged. D. recorded on the anniversary date of the purchase.
A
NO.120 An internal auditor discovers that employees can enter and approve their own wire transfers. This practice violates what internal control? A. Adequate segregation of duties B. Accurate reporting of cash transactions C. Appropriate monitoring of covenant compliance D. Proper authorization of investment transactions
A
NO.121 The CFO of a growing company has decided that it would be prudent to insure the company against potential loss from dishonest acts of employees. The treasurer has been given the responsibility of selecting and negotiating the type and amount of protection required. After analyzing the overall risk to the company, the treasurer decides that the greatest exposure to this type of risk is within the cash management function of the company. The MOST appropriate type of protection would be: A. fidelity. B. crime. C. blanket. D. fiduciary.
A
NO.123 Which of the following must be considered when designing the basic framework for a cash management system? A. Industry standards and practices B. SEC regulations C. FASB rulings D. Public company listing guidelines
A
NO.127 As an internal control tool, what does the matching of an invoice to the original purchase confirm? A. The placement of the order B. The fulfillment of the order C. The execution of the order D. The payment of the order
A
NO.131 Company X has a rating that is below investment grade. The treasurer would prefer to use commercial paper for its short-term financing needs and has a commitment from its bank to provide a standby letter of credit. What costs would be associated with this process? A. Rating agency charges, credit enhancement costs, and dealer fees B. Discount, broker fees, and commitment fees C. Dealer fees, compensating balances, and participation fees D. Commissions, rating agency charges, and broker fees
A
NO.136 Which of the following statements is typically true about a net settlement system? A. It significantly reduces the total cost of transfers. B. Participants obtain improved payment terms from suppliers. C. Receivables and payments are continuously settled 1-to-1. D. An independent third party determines the settlement dates.
A
NO.139 An employer wishing to reduce operating income volatility would MOST LIKELY offer what type of retirement option to its employees? A. Defined contribution plan B. Defined benefit plan C. Retirement bonus plan D. Cash balance plan
A
NO.142 Company XYZ's government relations team has done a poor job in maintaining and nurturing its relationship with the local government. Because of new business ventures it is pursuing, the company needs a method that will help it monitor and collect international accounts receivables between subsidiaries. What technique is more suited given its situation? A. Internal factoring B. Re-invoicing C. Bilateral netting D. Multilateral netting
A
NO.147 Which of the following is true when a company purchases goods using trade credit from suppliers? A. The buyer incurs no added cost if it pays on time. B. The supplier will charge interest to the buyer. C. The buyer should record this as a long-term liability. D. The supplier places a lien on the goods sold until payment.
A
NO.148 The treasurer of a corporation is negotiating with one of his/her suppliers to allow the corporation to have 30 days to pay the supplier's invoices. The treasurer is arranging: A. short-term financing. B. revolving credit agreement. C. factoring of receivables. D. uncommitted line of credit.
A
NO.149 Two critical factors in determining an operational risk management strategy for a company are: A. organizational culture and technology. B. industry standards and competition. C. technology and data security. D. physical security and the number of manual processes.
A
NO.153 A company's credit agreements or loan covenants may require: A. minimum ratings for insurance carriers. B. high deductible levels and risk retention in order to minimize premium payments. C. outsourcing of the claims approval and payment process to an insurance company. D. risk management staff to work directly with underwriters to reduce commission payments.
A
NO.154 A main characteristic of a company with regional offices using a centralized treasury function is: A. high level of control. B. increased borrowing costs. C. centrally determined depository accounts. D. increased operating costs.
A
NO.155 Which of the following is NOT a method multinational companies (MNC) use to repatriate capital? A. Internal factoring B. Dividends C. Transfer pricing D. Management fees
A
NO.156 Today's modern cash management systems would include which of the following? A. Full integration to ERP systems B. Performance management systems and support C. Remote check disbursement software D. Full customer relationship management (CRM) capability
A
NO.162 When evaluating candidates who have responded to an RFP for banking services, a highly leveraged company will probably apply a higher weighting to: A. flexible credit terms at competitive rates. B. the ability to customize services. C. the cost of switching providers. D. the adequacy of internal controls.
A
NO.166 The goal of investor relations is to: A. ensure that a company's securities achieve a fair valuation in the marketplace. B. ensure equity analysts have all available company information at any point in time. C. maintain the company's stock listing on the NYSE. D. make sure all shareholders cast a vote at the annual meeting.
A
NO.170 Which function involves evaluating alternative projects in relation to one another and in relation to the company's cost structure? A. Capital budgeting B. Corporate forecasting C. Financial planning D. Financial risk management
A
NO.172 Consolidation and specialization in the financial services industry have made financial institution and financial service provider selection a(n): A. more important decision process for a treasurer. B. less critical decision process for a treasurer. C. easier decision process for a treasurer. D. unimportant decision process for a treasurer.
A
NO.173 To arrive at today's projected closing cash position, a cash manager starts with: A. the opening bank available balance. B. yesterday's projected closing cash position. C. the general ledger cash balance. D. today's expected settlements.
A
NO.175 A company is interested in lowering its overall banking costs, managing netting, pooling, reinvoicing, and centralizing FX exposure at headquarters. Which of the following options will accomplish this? A. In-house banking B. Shared service center C. Company processing center D. Automated clearing house
A
NO.176 A large U.S. company is planning to fund its Canadian subsidiary. Currently, the Canadian dollar is trading at CAD 1.25 per U.S. dollar, and the U.S. dollar is expected to depreciate in the near term. To manage this FX exposure, what technique should the company implement? A. Leading B. Re-invoicing C. Lagging D. Multicurrency accounts
A
NO.177 A treasury manager expects the price of a commodity to be highly volatile between the time of option purchase and exercise. Which option style would provide the greatest flexibility? A. American Style B. Bermuda Style C. Cayman Style D. European Style
A
NO.179 Which of the following is a KEY operational advantage of short-term debt? A. It can be arranged quickly and easily. B. It improves the current ratio for debt covenant and compliance purposes. C. It reduces the risk of interest rate fluctuation and lowers interest expense. D. It improves the overall liquidity position and reduces risk.
A
NO.181 A multinational company owns a United Kingdom subsidiary that has total assets equal to GBP1 million and intercompany loans due to the parent company equal to $1 million. It would like to undertake a balance sheet hedge of the U.K. subsidiary's GBP liability because it expects a depreciation of the pound. Given these circumstances, which of the following actions would be appropriate? A. Borrow GBP from a U.K. bank to repay the intercompany dollar debt. B. Borrow USD from a U.K. bank to repay the intercompany dollar debt. C. Take no action because exchange rates cannot be predicted. D. Exchange rates are fixed and thus no losses should occur.
A
NO.182 Company X, a US based multi-national, is exploring the option of locating a subsidiary in another country where there has been some historical risk of expropriation of local assets of foreign corporations. Therefore, as part of the risk assessment process the company must specifically quantify the: A. political risk. B. physical security risk. C. financial institution risk. D. property risk.
A
NO.183 A company invests all of its short-term excess cash in T-bills on a daily basis. To prevent delays in processing its outgoing wire transfers, the company may ask its cash management bank to establish a: A. daylight overdraft line. B. letter of credit. C. revolving line of credit. D. net debit cap.
A
NO.188 Banks often control information flow, records and assets, therefore it is critical that banks have: A. backup systems and disaster recovery procedures. B. controlled disbursement procedures. C. standard formats for electronic submission. D. timetables for service implementation.
A
NO.189 A company enters into a cash flow hedge to offset fluctuations in the value of foreign currency transactions occurring in two years. How should the company record the gains and/or losses on the cash flow hedge in the current year? A. The hedged gains and losses are reported in comprehensive income. B. The hedged gains and losses are reported in current period income. C. The hedged gains and losses are reported in current period income together with the offsetting gains and losses of the foreign currency. D. The hedged gains and losses are reported in comprehensive income together with the offsetting gains and losses of the foreign currency.
A
NO.196 The exchange of a fixed interest rate cash flow for a floating interest rate cash flow with both interest rates in the same currency is an example of: A. a vanilla swap. B. an interest rate option. C. a basis-rate swap. D. an interest rate cap.
A
NO.106 Net working capital is defined as: A. cash minus accrued liabilities. B. current assets minus current liabilities. C. investments minus current liabilities. D. total assets minus total liabilities.
B
NO.108 For a retirement plan to be qualified under ERISA, employer and employee contributions must be: A. invested to maximize portfolio return. B. placed in a separate fund held by a third party. C. placed with a professional investment manager. D. invested to provide a defined benefit for plan participants.
B
NO.114 The first step in the financial institution and financial services provider (FSP) selection process should be: A. selecting a pool of available candidates. B. identifying the critical product or service specifications. C. establishing a grading mechanism. D. evaluating the cost of switching providers.
B
NO.115 The key parties involved in a disaster recovery plan are generally classified as internal resources or external counterparties. When evaluating the risks of both parties, which of the following can be assumed? A. The review of internal resources takes greater importance. B. The infrastructure linking the parties' systems must be considered. C. The disaster recovery sites of both parties must be in the same location. D. The systems used by both parties must be compatible.
B
NO.116 A treasurer has been advised that his privately held company has just lost its largest customer, which will have a significant impact on earnings. The treasurer applies an aggressive working capital strategy. Presently, the yield curve is upward sloping. Given this information, the treasurer should ensure that the company has: A. short-term non-committed lines. B. short-term committed lines. C. long-term non-committed lines. D. long-term committed lines.
B
NO.117 A large, nation-wide, retailer of plumbing fixtures is considering implementing ACH technology to improve its accounts receivable processing. Which of the following pre-authorized ACH transactions can the company use for this application? A. ARC (Accounts Receivable Conversion) B. CIE (Customer-Initiated Entry) C. TEL (Telephone-Initiated Entry) D. WEB (Internet-Initiated Entry)
B
NO.129 A treasurer overhears several employees talking about selling their company stock before a pending deal impacts the stock negatively. What action should the treasurer take to control this behavior in the future? A. Report the employees to the SEC. B. Provide training on ethics and code of conduct. C. Contact the investor relations department. D. Contact the internal and external auditors.
B
NO.132 A company with a relatively poor credit rating borrows most of its funds with short maturities. They may want to change its exposure to interest rates to more correctly reflect the longterm nature of the projects it is funding. Or, they may believe that long-term interest rates are going to rise, causing it to seek protection against the impact of higher interest rates on its balance sheet. Which of the following would be a solution? A. Forward contract B. Interest rate swap C. Currency option D. Futures contract
B
NO.133 A regional physicians' group is looking for an alternative to liability insurance to help protect against potential future liability claims. Which method would BEST serve its need to protect against catastrophic losses? A. Casualty insurance B. A risk retention group C. Non-insurance D. Self-insurance
B
NO.146 In order to be defined as independent, a corporate director: A. cannot have owned preferred stock shares in the company. B. cannot have a material relationship with the company. C. cannot meet regularly with executive management outside of board meetings. D. cannot have been an employee with the company during the past three years.
B
NO.151 A U.S. firm acquires a large U.K. manufacturer that generates high levels of cash flow in its local currency. The purchase is denominated in British pounds and is financed through the issuance of 10-year, 7.5% U.S. dollar bonds. The U.S. firm will rely entirely on the U.K. manufacturer's cash flows to fund the interest payments on the bonds. What derivative instrument would help the U.S. firm manage its FX exposure? A. Currency forward B. Currency swap C. Interest-rate swap D. Currency future
B
NO.161 A company is looking for a way to finance their inventory. What is the BEST funding match? A. Long-term private placement B. Short-term debt C. Equity issuance D. Stock split
B
NO.163 When evaluating a FSP during the RFP process, a company should place a high value on a FSPs financial strength when the provider: A. is located in a remote location. B. holds assets for the company. C. processes high dollar value transactions. D. processes international transactions.
B
NO.164 A multinational company may use which of the following to locate profits in subsidiaries in low-tax countries? A. Dividends B. Transfer pricing C. Management fees D. Intracompany loans
B
NO.165 Which of the following is a source of short-term financing? A. Bond issuance B. Factoring of accounts receivable C. Issuance of common stock D. Retaining profits
B
NO.168 A U.S.-based electronics company that buys components from one of its foreign subsidiaries at a price above market is likely to: A. be paid large dividends by the subsidiary. B. be sheltering profits in a low-tax country. C. need tax consultants to act as intermediaries. D. make payment with an intracompany loan.
B
NO.184 A seller's cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30. What is the present value of receiving full payment on day 30? A. $198,019.80 B. $198,046.66 C. $199,335.55 D. $199,344.62
B
NO.186 What does a company with a restrictive current asset investment strategy typically have? A. High financing costs B. Low accounts receivable balances C. High inventory levels D. Low tax liabilities
B
NO.190 The principal roles of corporate finance include which one of the following combination of functions? A. Maintaining liquidity and optimizing cash B. Capital budgeting and financial risk management C. Establishing credit terms and collection policies D. Shareholder relations and dividend decisions
B
NO.191 Which of the following is an important component of corporate governance? A. The existence of a large number of institutional investors B. The activities of independent outside auditors C. The existence of a matrix management structure D. The level of compliance with GAAP
B
NO.192 An evaluated receipts settlement would be MOST commonly used in an environment where: A. the cash conversion cycle is typically long. B. inventory turns over rapidly. C. volumes involved are small. D. the supplier sends an invoice.
B
NO.193 ----- A company has negotiated a credit facility with the following terms: $5,000,000 line of credit $3,000,000 average borrowing 30 basis point commitment fee on the unused portion of the line Interest rate on advances is 1-month LIBOR plus 4% 1-month LIBOR is currently 2% What is the annual interest rate on the line of credit? A. 6.0% B. 6.2% C. 9.0% D. 9.3%
B
NO.194 In order to increase liquidity, ABC Motor Company bundled its customers' installment payments and resold them to other investors. This is known as: A. factoring. B. securitization. C. reclassification. D. secondary distribution.
B
NO.195 Some treasury management systems are capable of initiating investment purchases and loan drawdowns automatically. The automating of these transactions is related to which of the following treasury management functions? A. Payment management B. Liquidity management C. International trade management D. Capital budget management
B
NO.198 A put option gives the holder the right to: A. buy the underlying stock at the strike price. B. sell the underlying stock at the strike price. C. sell short shares of the underlying stock at the strike price. D. buy long shares of the underlying stock at the strike price.
B
NO.200 A publicly traded company is looking to fund its next project with the issuance of stock. The company's stock is primarily held by a small group of investors. The company is concerned that issuing stock may upset these investors because it would dilute their holdings. Which of the following strategies would help address the investors' concern? A. Grant the investors cumulative voting rights. B. Grant the investors pre-emptive rights to the new issue. C. Allow the investors to cast their votes by proxy at the next shareowners meeting. D. Offer to stagger the election of directors.
B
NO.104 A treasurer is monitoring the yield curve through a service provider (like Reuters) and notices that it is moving from downward sloping to upward sloping. Based on this information, the treasurer should consider: A. a commercial paper program. B. a short-term borrowing facility. C. interest rate collars. D. a variable rate long term facility.
C
NO.105 A company is concerned that investor dissatisfaction could lead to a rapid change in its board membership. To prevent this, which of the following strategies should the company employ? A. Grant shareowners preemptive rights for new shares. B. Give shareowners cumulative voting rights. C. Stagger the election of its directors. D. Allow shareowners to vote by proxy.
C
NO.107 An accounts payable manager has been mandated to accept all trade discount opportunities with an effective cost of discount above 25%. An invoice has been presented and approved for payment with terms of 3/5, net 30 days. What is the difference between the effective cost of discount offered, and the 25% rate set by the company? A. 14% B. 17% C. 20% D. 22%
C
NO.118 Disbursement float includes which of the following three float time intervals? A. Mail, processing, and availability float B. Mail, invoicing, and availability float C. Mail, processing, and clearing float D. Mail, invoicing, and clearing float
C
NO.119 A call option is said to be "in-the-money" when the market price of the underlying security is: A. lower than the strike price. B. same as the strike price plus premium. C. higher than the strike price. D. same as the strike price minus premium.
C
NO.122 If the Federal Reserve Board increased the discount rate, you would expect: A. long-term bonds to increase more in price than short-term bonds. B. short-term bonds to decrease more in price than long-term bonds. C. long-term bonds to decrease more in price than short-term bonds. D. that there would be no effect on either long- or short-term bond prices.
C
NO.124 Which of the following payment types is at the greatest risk for fraud? A. Wire transfers B. Credit cards C. Checks D. ACHs
C
NO.125 Which of the following industries is MOST LIKELY to use a sophisticated cash concentration system with multiple banks as part of its cash management system? A. Telecommunications B. Automotive C. Retail D. Payroll service
C
NO.126 The combination of difference in condition (DIC) insurance and umbrella insurance: A. transfers risk to a company's captive insurance subsidiary. B. replaces the coverage provided by basic property and liability insurance. C. supplements the coverage provided by basic property and liability insurance. D. provides payments to a company in the event it is unable to pursue a line of business due to an unforeseen event.
C
NO.128 What is one chief advantage of issuing short-term securities in book-entry form? A. The securities cannot be transferred electronically. B. The physical exchange of certificates is required. C. Transaction clearing can be performed with ease and speed. D. Security registration is not required.
C
NO.138 Under Section 404 of the Sarbanes-Oxley Act, management must state its responsibility for which of the following? A. Knowledge of the penalties for noncompliance B. Selection of auditors who are knowledgeable about Sarbanes-Oxley requirements C. Establishment and maintenance of adequate internal controls for financial reporting D. Accuracy and completeness of financial statements
C
NO.141 As a result of the Sarbanes-Oxley Act, what new entity was established to sanction firms and individuals for audit violations? A. The Sarbanes-Oxley Review and Assessment Board B. The Accounting Controls Advisory Board C. The Public Company Accounting Oversight Board D. The Auditing Review Board
C
NO.143 A company expects the U.S. dollar to depreciate in value compared to the British pound. The company will have a British pound payment to make in five months. The company would MOST LIKELY buy: A. a U.S. dollar call. B. a U.S. dollar put. C. a British pound call. D. a British pound put.
C
NO.145 A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee. This management fee may need to be: A. manipulated to locate profits in low-tax countries. B. paid through a third-party intermediary. C. negotiated with the host government. D. significantly taxed by the host government.
C
NO.152 The rate of interest commercial banks charge their best credit rated customers is called the: A. discount rate. B. call rate. C. prime rate. D. real interest rate.
C
NO.157 Under the standards of corporate governance adopted in 2002, an independent director must: A. meet with management in regular executive sessions. B. have been with the organization for at least five years. C. have no material relationship with the organization. D. be one of three directors on the nominating committee.
C
NO.158 A U.S. based multinational company is filing its U.S. tax return and notes that its U.K. subsidiary had pre-tax income equal to $1 million. The U.K. subsidiary paid an effective tax rate on this income of 40%. If the U.S. tax rate is 34%, what will be the amount of the foreign tax credit on the U.S. tax return related to the U.K. income? A. $60,000 B. $280,000 C. $340,000 D. $400,000
C
NO.160 Which of the following could be considered a weakness of a forecast derived by regression analysis? A. More than one factor may affect the event being measured. B. Seasonality cannot be incorporated into the forecast. C. A large amount of data is required. D. It is only valid for long-term forecasting.
C
NO.167 The "agency problem" refers to: A. management's use of a fiduciary agent for stockholders. B. a large and active institutional investor base acting on behalf of individual investors. C. stockholders who allow management to take actions that will benefit management. D. the internal audit function reporting to the audit committee of the board instead of to management.
C
NO.169 A company determines that no combination of risk control or financing techniques will produce an adequate, risk-adjusted rate of return on manufacturing a new product. It decides to discontinue the product line. This is an example of: A. capacity error. B. indemnification. C. exposure avoidance. D. consequential damages.
C
NO.171 A company has negotiated a credit facility with the following terms: $5,000,000 line of credit $3,000,000 average borrowing 30 basis point commitment fee on unused portion of line Interest rate on advances is 1-month LIBOR plus 4% 1-month LIBOR is currently 2% Compensating balance requirement of 20% on the outstanding borrowings ------ What is the effective annual borrowing rate for the line of credit? A. 6.0% B. 6.2% C. 7.8% D. 9.3%
C
NO.178 Treasury policies should be approved by the: A. audit committee. B. controller. C. board of directors. D. external auditors.
C
NO.185 When using the Internet to access auction markets, companies may use certificate authorities to reduce their exposure to which of the following types of risk? A. Credit B. Valuation C. Counterparty D. Foreign exchange
C
NO.199 An airline wants to lock in the price of the jet fuel it needs to purchase to satisfy the peak inseason demand for travel. The airline wants to manage its exposure to fluctuations in fuel prices. What type of exposure is this? A. Translation B. Delivery C. Commodity D. Speculative
C
NO.109 If a corporation pays 70% of its current earnings to its stockholders in the form of cash dividends, the remaining 30% kept by the company will cause a(n): A. decrease in earned surplus. B. decrease in stockholders' equity. C. increase in capital surplus. D. increase in retained earnings.
D
NO.130 A treasury employee of Company XYZ is privy to financial reporting information yet to be released to the public. He knows that year-end earnings exceed last year's and would be viewed as positive to the investment community. He casually mentions to a relative that now would be a good time to buy the stock of Company XYZ. Which section of the treasury code of ethics would typically be violated by such a disclosure? A. Employee conduct B. External activities C. Conflict of interest D. Confidential information
D
NO.134 To strengthen outside auditor independence with regard to publicly held companies, the Sarbanes-Oxley Act requires that: A. employment of staff from companies' accounting firms be approved in advance by the audit committees. B. companies change accounting firms for audit services at least every seven years. C. accounting firms supply audit work papers annually to the SEC for their clients. D. the lead audit partner and audit review partner be rotated every five years.
D
NO.135 Which of the following is NOT an operational risk? A. Workers' compensation risk B. Fidelity risk C. Surety risk D. Currency risk
D
NO.137 Which of the following statements BEST applies when evaluating fees in an RFP for bank services? A. Flexible credit terms are the most important consideration. B. Ability of financial institution to customize services is critical. C. A proforma account analysis statement captures all pricing and compensation detail. D. Accurate evaluation and comparison of the proforma account analysis statements are critical.
D
NO.140 When projecting the closing cash position, a cash manager must estimate which of the following? A. ACH credits B. Lockbox receipts C. Checks in the process of collection D. Clearings on non-controlled disbursement accounts
D
NO.144 One of the PRIMARY ways the Fed addresses systemic risk is by: A. assigning passwords and PINs to identify authorized users of its Fedwire system. B. establishing intra-day credit limits for ACH originators. C. setting minimum reserve requirements for its member banks. D. setting daylight overdraft limits for its member banks.
D
NO.150 The measurement of the significance of any loss exposure depends on: A. loss type and loss prevention. B. loss response and loss control. C. loss probability and loss history. D. loss frequency and loss type.
D
NO.159 One of the KEY risks associated with a company's use of financial institutions is the possibility that: A. frequent account management turnover at an institution will disrupt the company's operations. B. an institution's operations will put the company in violation of the Gramm-Leach-Bliley Act. C. an institution will inadvertently share the company's confidential data with its competitors. D. the institution will fail, which will have a financial impact on the company.
D
NO.174 The MOST effective way to reduce the internal risk of technology as it relates to critical treasury functions is to: A. implement an integrated accounts payable module as part of an automated general ledger package. B. secure complex spreadsheets with formula protection and multi-level password access. C. back up complex spreadsheets from PCs onto a local area network server daily. D. replace complex spreadsheets with certified treasury systems.
D
NO.180 A national retailer's cash management system includes a field deposit system using multiple banks. To limit the impact of a failure of one of these banks, a cash manager should: A. consolidate all accounts at one bank. B. use wire transfers for concentration. C. monitor each bank's credit policies. D. concentrate cash on a regular basis.
D
NO.187 A buyer receives an invoice from a supplier that offers discount terms of 3/10, net 60. What is the effective cost of discount? A. 15.64% B. 16.13% C. 21.90% D. 22.58%
D
NO.197 The auditors of a private college are examining and auditing the college's financial statements. The statements are not presented in accordance with GAAP. What should the auditors do? A. Issue a standard unqualified opinion. B. Not render an opinion. C. Base their opinion on GASB standards. D. Issue an adverse opinion.
D
