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NEW QUESTION 261
In a large company, the person who normally oversees both the treasury and the accounting functions is the:
- A. chief financial officer.
- B. treasurer.
- C. controller.
- D. chief operations officer.
Answer: A
NEW QUESTION 262
Underfunded pension obligations can be reduced by:
- A. higher premiums to the Pension Benefit Guaranty Corporation.
- B. an upward shift in the yield curve.
- C. higher benefit payments to retirees.
- D. immediate vesting in the defined contribution plan.
Answer: B
NEW QUESTION 263
A merchant, wanting to accept credit cards as payment method, will negotiate its fees with which of the following participants?
- A. Issuing processor
- B. Acquiring bank
- C. Issuing bank
- D. Network operator
Answer: B
NEW QUESTION 264
Which of the following is a purpose of the Check 21 Act?
- A. Foster innovation in the ACH payment system
- B. Grant legal status for digital signatures
- C. Facilitate check truncation
- D. Improve check imaging and archiving
Answer: C
NEW QUESTION 265
A public corporation may value a defined contribution plan highly because it:
- A. allows the corporation to capture plan investment surpluses.
- B. allows proxy voting in favor of management.
- C. defines allowed investments within the plan.
- D. shifts investment shortfall risk to employees.
Answer: D
NEW QUESTION 266
Which of the following credit terms would be MOST appropriate for a seasonal product that a manufacturer wants to sell to a retailer during the product's off-season?
- A. 2/10, net 120
- B. 2/10, net 30
- C. 3/15, 2/30, net 45
- D. 2/10, prox 30
Answer: A
NEW QUESTION 267
A company's accounts receivable balance pattern is shown in the first table. Credit sales are shown in the second table.
What is the cash inflow for the month of August?
- A. $238
- B. $633
- C. $213
- D. $300
Answer: A
NEW QUESTION 268
A wholesale lockbox system does which of the following?
- A. Processes small dollar remittances
- B. Provides information about invoices
- C. Relies on high speed automation
- D. Requires standard scannable documents
Answer: B
NEW QUESTION 269
Company ABC is experiencing an increase in bank fees due to its new international customers paying by check. Nearly 15% of all deposited items are international checks. Twenty percent of the company's checks have 1 day of float. Sixty-five percent of the company's checks are on-us items. The company has $300,000 of deposits each day. The company's deposits consist of both cash and checks, split evenly. On a typical day, how much of the deposit will be available immediately?
- A. $195,000
- B. $97,500
- C. $60,000
- D. $247,500
Answer: D
NEW QUESTION 270
Senior management at ABC Company plans to make a large capital expenditure to bolster its infrastructure exactly one year from now. Their primary concern is to preserve the current capital position until the expected cash outlay. The majority of the cash at ABC Company is held in treasury notes, but management would like to also invest some of the money into corporate bonds and money market funds. Which investment objective BEST suits the needs of ABC Company?
- A. Liquidity
- B. Diversification
- C. Exposure Horizon
- D. Safety
Answer: D
NEW QUESTION 271
Because of the growing demand in China for oil, a transportation company decides to assume a long position on oil in hopes of generating short-term investment income. Which of the following describes the firm's strategy?
- A. Hedging
- B. Risk management
- C. Arbitrage
- D. Speculation
Answer: D
NEW QUESTION 272
Which of the following is subject to translation exposure?
- A. A German company with a subsidiary in Spain
- B. A U.K. company that exports goods to the United States
- C. A Japanese subsidiary in the United States with U.S. dollar liabilities
- D. A Spanish company with revenues in euros
Answer: C
NEW QUESTION 273
XYZ Company has decided to purchase a close competitor. This acquisition would make XYZ Company the 4th largest in its industry allowing it better purchasing power and greater distribution channels. After completing the M&A analysis, it is determined that the combined companies would produce a 40% increase in revenue, reduce manufacturing costs by 30%, but would increase current liabilities by 27%. Which of the following would keep the acquisition from happening?
- A. Increased weighted average cost of capital
- B. Negative net present value
- C. Restrictive bond covenants
- D. Low return on investment
Answer: C
NEW QUESTION 274
Under an operating lease, possible benefits to the lessee include which of the following?
I) It requires no initial capital outlay.
II) It can be structured as an off-balance-sheet item.
III) It can offer tax advantages.
- A. I and II only
- B. I, II, and III
- C. I only
- D. II and III only
Answer: B
NEW QUESTION 275
A multinational corporation (MNC) moving all of its Mexican peso-denominated revenues into a lower tax-rate jurisdiction could adopt any of the following treasury practices EXCEPT:
- A. an in-house bank.
- B. a shared service center.
- C. licensing fees to subsidiaries.
- D. a notional pooling program.
Answer: D
NEW QUESTION 276
Fluctuations in interest rates and the availability of funds are more significant risks for companies that rely on:
- A. short-term borrowing for short-term uses.
- B. long-term borrowing for short-term uses.
- C. long-term borrowing for long-term uses.
- D. short-term borrowing for long-term uses.
Answer: D
NEW QUESTION 277
Which of the following is NOT one of the three goals of a disbursement system?
- A. Bank relationship management
- B. Fraud prevention
- C. Information access
- D. Centralize payments
Answer: A
NEW QUESTION 278
Which of the following institutions would be regulated by the Office of the Comptroller of the Currency (OCC)?
- A. Regency National Bank
- B. Regency Federal Credit Union
- C. Regency Savings and Loan
- D. Regency Bank Holding Company
Answer: A
NEW QUESTION 279
Which of the following is a characteristic of giro systems used in countries in Europe?
- A. They operate through their postal systems.
- B. They do not replace checks for the payment of bills.
- C. They are primarily used for company-to-company payments.
- D. They do not allow the use of direct debits and credits.
Answer: A
NEW QUESTION 280
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