Treasury and Finance Certification Practice Exam |
Verified Questions with 100% Correct Answers
(Updated 2025)
For a company to be successful in selling overseas, it should do which of the following? - ✔✔Understand
the unique banking systems and social dynamics in the countries in which it does business
A U.S. company has a subsidiary in Spain. Its Spanish subsidiary balance sheet has greater assets than
liabilities denominated in EUR. If the EUR has depreciated against the USD, What type of exposure
represents the Spanish subsidiary balance sheet and what type of translation result will it have for the
U.S. company? - ✔✔Positive exposure and translation loss
What is the deciding factor in how IAS or ASC Topic guidelines require accounting for gains and losses
arising from changes in a derivative's fair value? - ✔✔The instrument's designation
Which of the following statements is true of collateralized loans for inventory financing? - ✔✔A lender's
claim against inventory is recorded as a lien
In the trade-off theory, companies trade off between which of the following variables? - ✔✔Use of debt
and the use of equity
Imaging services are used by some banks to enhance which of the following services? - ✔✔Positive Pay
Before spending a great deal of time on a proposed project, a company wants to find out if any of the
numerous vendors in the area have the expertise to meet their needs. Which of the following would
BEST fit their needs? - ✔✔Request for information (RFI)
Match the following U.S. organizations to their respective areas of oversight.
U.S. Organizations:
I. Public Company Accounting Oversight Board (PCAOB)
,II. Financial Accounting Standards Board (FASB)
III. Governmental Accounting Standards Board (GASB)
IV. Securities and Exchange Commission (SEC)
Areas of Oversight:
1. The authoritative standard-setting body for state and local governments, public schools, state
universities and other government-affiliated agencies
2. Develops US accounting standards for public, for-profit organizations
3. Holds authority for enforcing US accounting principles
4. Created by the Sarbanes-Oxley Act of 2002 with the goal of protecting investors - ✔✔I: 4; II: 2; III: 1;
IV: 3
A company can use which of the following to reduce financial exposures?
I. Options
II. Swaps
III. Futures
IV. Forwards - ✔✔I, II, III and IV
An organization's overnight investment rate is 3% annually. A wire transfer costs $26; an ACH costs
$0.80 but takes two days longer than the wire transfer. What is the minimum amount needed to justify
using the more expensive wire transfer method? (Rounded to the nearest whole dollar) - ✔✔$153,300
, Which of the following statement is true of banker's acceptances (BAs)? - ✔✔BAs may be sold at a
discount prior to maturity
Compliance with the Sarbanes-Oxley Act (SOX) means that publicly traded firms must .-
✔✔Indicate that they have established and are maintaining adequate internal controls for financial
reporting
Which of the following generally occurs when a stock is listed on an organized stock exchange rather
than just on automated quotation systems? - ✔✔Increased marketability and reduced perception of
market risk
A credit department with a zero default rate on credit sales is usually indicative of which of the following
situations? - ✔✔Reduced sales due to credit terms that are too strict
Which of the following are typical responsibilities of a treasurer?
I. Financial institution relationship management
II. Internal audit
III. Short-term borrowing
IV. Liquidity management - ✔✔I, III and IV only
Which of the following is a type of issuer credit rating that is made primarily on financial institutions and
insurance companies? - ✔✔Counterparty ratings
Internal transfers of funds among a company's operating units to provide sufficient cash for
disbursements is an example of which of the following type of operating cash flows? - ✔✔Internal
liquidity management flows
Which is a disadvantage of long-term export financing through an export credit agency (ECA)? -
✔✔Currency exposures can occur if the currency of the loan is different from that of the cash flow of
the project or subsidiary business
Verified Questions with 100% Correct Answers
(Updated 2025)
For a company to be successful in selling overseas, it should do which of the following? - ✔✔Understand
the unique banking systems and social dynamics in the countries in which it does business
A U.S. company has a subsidiary in Spain. Its Spanish subsidiary balance sheet has greater assets than
liabilities denominated in EUR. If the EUR has depreciated against the USD, What type of exposure
represents the Spanish subsidiary balance sheet and what type of translation result will it have for the
U.S. company? - ✔✔Positive exposure and translation loss
What is the deciding factor in how IAS or ASC Topic guidelines require accounting for gains and losses
arising from changes in a derivative's fair value? - ✔✔The instrument's designation
Which of the following statements is true of collateralized loans for inventory financing? - ✔✔A lender's
claim against inventory is recorded as a lien
In the trade-off theory, companies trade off between which of the following variables? - ✔✔Use of debt
and the use of equity
Imaging services are used by some banks to enhance which of the following services? - ✔✔Positive Pay
Before spending a great deal of time on a proposed project, a company wants to find out if any of the
numerous vendors in the area have the expertise to meet their needs. Which of the following would
BEST fit their needs? - ✔✔Request for information (RFI)
Match the following U.S. organizations to their respective areas of oversight.
U.S. Organizations:
I. Public Company Accounting Oversight Board (PCAOB)
,II. Financial Accounting Standards Board (FASB)
III. Governmental Accounting Standards Board (GASB)
IV. Securities and Exchange Commission (SEC)
Areas of Oversight:
1. The authoritative standard-setting body for state and local governments, public schools, state
universities and other government-affiliated agencies
2. Develops US accounting standards for public, for-profit organizations
3. Holds authority for enforcing US accounting principles
4. Created by the Sarbanes-Oxley Act of 2002 with the goal of protecting investors - ✔✔I: 4; II: 2; III: 1;
IV: 3
A company can use which of the following to reduce financial exposures?
I. Options
II. Swaps
III. Futures
IV. Forwards - ✔✔I, II, III and IV
An organization's overnight investment rate is 3% annually. A wire transfer costs $26; an ACH costs
$0.80 but takes two days longer than the wire transfer. What is the minimum amount needed to justify
using the more expensive wire transfer method? (Rounded to the nearest whole dollar) - ✔✔$153,300
, Which of the following statement is true of banker's acceptances (BAs)? - ✔✔BAs may be sold at a
discount prior to maturity
Compliance with the Sarbanes-Oxley Act (SOX) means that publicly traded firms must .-
✔✔Indicate that they have established and are maintaining adequate internal controls for financial
reporting
Which of the following generally occurs when a stock is listed on an organized stock exchange rather
than just on automated quotation systems? - ✔✔Increased marketability and reduced perception of
market risk
A credit department with a zero default rate on credit sales is usually indicative of which of the following
situations? - ✔✔Reduced sales due to credit terms that are too strict
Which of the following are typical responsibilities of a treasurer?
I. Financial institution relationship management
II. Internal audit
III. Short-term borrowing
IV. Liquidity management - ✔✔I, III and IV only
Which of the following is a type of issuer credit rating that is made primarily on financial institutions and
insurance companies? - ✔✔Counterparty ratings
Internal transfers of funds among a company's operating units to provide sufficient cash for
disbursements is an example of which of the following type of operating cash flows? - ✔✔Internal
liquidity management flows
Which is a disadvantage of long-term export financing through an export credit agency (ECA)? -
✔✔Currency exposures can occur if the currency of the loan is different from that of the cash flow of
the project or subsidiary business
