A company converts the expense processing for its sales team from reimbursement by check to providing the team with travel and entertainment cards. Immediately, the company’s expenses for the sales force increase by 10%, with no concurrent increase in sales volumes. What aspect should the company have covered in their policies for card use to prevent the increased expenses?
The Treasurer of PJB Company is in charge of implementing new treasury management software. Without issuing any RFPs, the Treasurer hires a consulting company to install the software and program it to suit the company’s needs. The Treasurer is responsible for approving the consultant’s invoices for payment. Through conversation, the CFO discovered that the Treasurer’s relative is one of the partners at the consulting company. The Treasurer was immediately terminated. What did the Treasurer MOST LIKELY violate?
ABC Company’s Treasury department outsourced its overnight investment duties to XYZ Money Management. XYZ placed the funds received from ABC into corporate commercial paper, which has recently gone into default after numerous ratings downgrades. The investment policy of ABC Company states that all investments must be in investment grade commercial paper; however, the agreement gives XYZ the ability to make exceptions with the approval of the Treasurer of ABC Company. The Treasurer was never notified of the ratings downgrades. What role or responsibility, if any, was violated with regards to the investment policy?
A treasurer decides to use notional pooling across wholly-owned multiple legal entities instead of wiring money between entity accounts. What specific section in the company’s policy allowed the treasurer to make this decision?
Which of the following activities creates administrative costs associated with a concentration system?
The mix of long-term debt and equity refers to a company’s:
Companies that seek out other companies that have successfully redesigned their operations are engaging in a process called:
Which of the following statements are true about collected balances?
I. They can be lower than ledger balances.
II. They are influenced by the bank's availability schedule.
III. They exclude negative account balances.
IV. They may generate an earnings credit.
In developing treasury policies and procedures, which activity requires key controls to be in place?
In recent years, there has been a sharp increase in the use of technology for certain financial transactions. Which of the following has increased dramatically over recent years?
Which of the following statements are true about the use of different discount rates for different types of projects?
I. Low-risk, short-term projects may be evaluated by using a short-term opportunity cost.
II. High-risk projects may be evaluated by using a discount rate that is greater than the company's normal opportunity cost.
III. A short-term investment (or borrowing) rate may be used as the company's short-term discount rate.
IV. The use of a lower discount rate for riskier projects forces riskier projects to earn higher rates of return.
For newly issued debt, a company’s effective cost of debt is a function of yield to maturity and:
Advantages of writing checks locally on a centralized disbursing bank include all of the following EXCEPT which statement?
Which of the following is a disadvantage of e-commerce?
Which of the following are examples of covenants in loan agreements?
I. Financial ratios
II. Corporate resolutions
III. Borrower limitations
IV. Borrower obligations
Which of the following is NOT one of the three goals of a disbursement system?
Controlled disbursement notification times can be improved by which of the following?
Which of the following is an example of a qualitative factor used in making credit decisions?
The PRIMARY difference between money market instruments and capital market instruments is that capital market instruments are securities that are:
Which two of the following are optimal uses for short-term excess cash?
I. Pay down credit lines.
II. Make overnight investments.
III. Repurchase stock.
IV. Make capital expenditures.
