CERTIFIED TREASURY PROFESSIONAL (CTP) EXAM
NEWEST 2026 ACTUAL EXAM| AFP CTP EXAM PREP
WITH COMPLETE REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED A+
(BRAND NEW!!)
1. Which primary objective best defines corporate treasury
management?
A. Maximizing accounting profits
B. Ensuring regulatory compliance
C. Optimizing liquidity and managing financial risk
D. Reducing tax liabilities
Answer: C
Rationale: Corporate treasury focuses on liquidity optimization,
funding management, and financial risk mitigation to support
organizational objectives.
2. The time value of money principle states that:
A. Money has constant value over time
B. Inflation has no effect on cash
C. A dollar today is worth more than a dollar in the future
D. Future cash flows are always preferable
Answer: C
1
,Rationale: Money available today can be invested to earn returns,
making it more valuable than the same amount received later.
3. Net present value (NPV) is defined as:
A. The payback period of a project
B. The present value of inflows minus the present value of
outflows
C. The internal rate of return
D. The profitability index
Answer: B
Rationale: NPV measures value creation by discounting future cash
flows to today and subtracting the initial investment.
4. Which discount rate is typically used for evaluating
corporate projects?
A. Prime rate
B. Treasury bill rate
C. Weighted average cost of capital (WACC)
D. Inflation rate
Answer: C
Rationale: WACC reflects the firm's blended cost of financing
(debt and equity) and is the appropriate hurdle rate for project
evaluation.
2
,5. The cash conversion cycle (CCC) measures:
A. Time to raise capital
B. Time between cash outflow for inventory and cash inflow from
sales
C. Days sales outstanding only
D. Inventory turnover
Answer: B
Rationale: The CCC = DSO + DIO - DPO. It measures the net time
between paying for inventory and collecting cash from customers.
6. Days Sales Outstanding (DSO) measures:
A. Inventory turnover
B. Average number of days to collect receivables
C. Payment period to suppliers
D. Cash on hand
Answer: B
Rationale: DSO = (Accounts Receivable / Total Credit Sales) ×
Number of Days. It reflects collection efficiency.
7. Which technique accelerates cash inflows?
A. Extending payment terms
B. Lockbox systems
C. Increasing inventory
3
, D. Delaying billing
Answer: B
Rationale: Lockbox systems speed up the collection and availability
of customer payments by using bank-operated PO boxes.
8. Concentration banking is primarily used to:
A. Reduce taxes
B. Centralize cash balances
C. Increase borrowing
D. Diversify investments
Answer: B
Rationale: Concentration banking consolidates funds from multiple
remote accounts into a single central account for efficient
management.
9. Zero-balance accounts (ZBAs) are designed to:
A. Maintain excess balances
B. Avoid bank fees
C. Automatically transfer funds to maintain zero balance
D. Eliminate cash forecasting
Answer: C
Rationale: ZBAs sweep funds in or out to maintain a zero balance
4
NEWEST 2026 ACTUAL EXAM| AFP CTP EXAM PREP
WITH COMPLETE REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED A+
(BRAND NEW!!)
1. Which primary objective best defines corporate treasury
management?
A. Maximizing accounting profits
B. Ensuring regulatory compliance
C. Optimizing liquidity and managing financial risk
D. Reducing tax liabilities
Answer: C
Rationale: Corporate treasury focuses on liquidity optimization,
funding management, and financial risk mitigation to support
organizational objectives.
2. The time value of money principle states that:
A. Money has constant value over time
B. Inflation has no effect on cash
C. A dollar today is worth more than a dollar in the future
D. Future cash flows are always preferable
Answer: C
1
,Rationale: Money available today can be invested to earn returns,
making it more valuable than the same amount received later.
3. Net present value (NPV) is defined as:
A. The payback period of a project
B. The present value of inflows minus the present value of
outflows
C. The internal rate of return
D. The profitability index
Answer: B
Rationale: NPV measures value creation by discounting future cash
flows to today and subtracting the initial investment.
4. Which discount rate is typically used for evaluating
corporate projects?
A. Prime rate
B. Treasury bill rate
C. Weighted average cost of capital (WACC)
D. Inflation rate
Answer: C
Rationale: WACC reflects the firm's blended cost of financing
(debt and equity) and is the appropriate hurdle rate for project
evaluation.
2
,5. The cash conversion cycle (CCC) measures:
A. Time to raise capital
B. Time between cash outflow for inventory and cash inflow from
sales
C. Days sales outstanding only
D. Inventory turnover
Answer: B
Rationale: The CCC = DSO + DIO - DPO. It measures the net time
between paying for inventory and collecting cash from customers.
6. Days Sales Outstanding (DSO) measures:
A. Inventory turnover
B. Average number of days to collect receivables
C. Payment period to suppliers
D. Cash on hand
Answer: B
Rationale: DSO = (Accounts Receivable / Total Credit Sales) ×
Number of Days. It reflects collection efficiency.
7. Which technique accelerates cash inflows?
A. Extending payment terms
B. Lockbox systems
C. Increasing inventory
3
, D. Delaying billing
Answer: B
Rationale: Lockbox systems speed up the collection and availability
of customer payments by using bank-operated PO boxes.
8. Concentration banking is primarily used to:
A. Reduce taxes
B. Centralize cash balances
C. Increase borrowing
D. Diversify investments
Answer: B
Rationale: Concentration banking consolidates funds from multiple
remote accounts into a single central account for efficient
management.
9. Zero-balance accounts (ZBAs) are designed to:
A. Maintain excess balances
B. Avoid bank fees
C. Automatically transfer funds to maintain zero balance
D. Eliminate cash forecasting
Answer: C
Rationale: ZBAs sweep funds in or out to maintain a zero balance
4
