A firm wants to accelerate check collections from customers in rural areas. Which service is most effective? A) Controlled Disbursement B) Lockbox with remote capture C) Zero Balance Account D) Positive Pay
A treasurer uses a forecast error analysis and finds a Mean Absolute Deviation (MAD) of $500,000. If the company holds a buffer of 2x MAD, what is the required safety stock of cash? A) $250,000 B) $500,000 C) $1,000,000 D) $2,000,000
C Rationale: ZBAs sweep funds from subsidiary accounts to a master account, allowing centralized control and maximizing investment opportunities or reducing overdrafts.
Which internal control best mitigates the risk of a rogue employee initiating a fraudulent wire transfer? A) Requiring manager approval for all wires above a de minimis threshold B) Reconciling bank statements only at year-end C) Using only physical signatures for all payments D) Granting the same employee authority to initiate, approve, and reconcile wires
A firm wants to accelerate check collections from customers in rural areas. Which service is most effective? A) Controlled Disbursement B) Lockbox with remote capture C) Zero Balance Account D) Positive Pay
A treasurer uses a forecast error analysis and finds a Mean Absolute Deviation (MAD) of $500,000. If the company holds a buffer of 2x MAD, what is the required safety stock of cash? A) $250,000 B) $500,000 C) $1,000,000 D) $2,000,000 Ctp-5 Practice Test Pdf
C Rationale: ZBAs sweep funds from subsidiary accounts to a master account, allowing centralized control and maximizing investment opportunities or reducing overdrafts. A firm wants to accelerate check collections from
Which internal control best mitigates the risk of a rogue employee initiating a fraudulent wire transfer? A) Requiring manager approval for all wires above a de minimis threshold B) Reconciling bank statements only at year-end C) Using only physical signatures for all payments D) Granting the same employee authority to initiate, approve, and reconcile wires If the company holds a buffer of 2x