Company XYZ sends an ACH debit file valued at $300,000 with an average item value of $1,000. The file settlement date is March 10. The file contains no duplicate items and items are split equally between corporate and consumer items. One percent of consumer items and 2% of corporate items were returned. What would be the final net settlement value for Company XYZ?
A United States corporation purchases finished products from a German subsidiary and sells raw materials to the subsidiary several times in one month. To minimize foreign exchange transaction costs, the U.S. corporation's cash manager would MOST LIKELY use:
Which of the following global cash concentration methods would be MOST appropriate for a company with operations in the United States, Germany, Mexico, and Japan?
A diversified industrial company operates multiple remote manufacturing facilities that manage local supplier relationships. The company draws on a single line of credit for all of its working capital needs. Which of the following types of disbursement systems would BEST meet this company's needs?
A company is considering expanding to a three-site lockbox system from its current two-site system and has collected the following data:
The average collection float in the current system is:
This question is based on the following data describing a company's actual deposits.
If a five-day moving average is used, what was the deposit forecast for day six?
A company purchases a machine tool with an expected life of 3 years. Under the accrual accounting method, the equipment would be treated in which of the following ways?
All of the following are common consumer-to-corporate international payment mechanisms EXCEPT:
The Sarbanes-Oxley Act of 2002 requires that a public company’s financial statements be certified by the company’s:
ABC Company offers trade terms of 2/10 NET 30. For several reasons, ABC has decided to eliminate the requirement for a letter of credit from one of its customers. If ABC puts the customer on open book credit, what is the MOST LIKELY outcome?
Which of the following is true about disbursement ZBAs?
If a company does not have cash available to make an interest payment on a bond, the company is experiencing difficulty with its:
Owners of a privately-held company have decided to sell the business, but are receiving offers dramatically lower than what the firm is worth (as estimated by the owners). Which of the following options is the BEST way for management to establish the true value of their company?
Which section of the statement of cash flows includes items that represent the cash inflows and outflows related to the daily functions of a company?
Which of the following is considered an important factor when selecting a financial service provider?
Which of the following factors would the cash manager consider when deciding whether to make a payment via Fedwire or ACH?
1. Cost of the payment
2. Payment due date
3. Availability of customer's funds
4. Loss of float
A multidivisional domestic company with centralized treasury decision-making can potentially utilize intra-company lending to:
In the event of bankruptcy and the subsequent liquidation of issuer's debt, in what order, from first to last, will the following be repaid?
1. Senior secured debt
2. Senior subordinated debt
3. Junior secured debt
4. Junior debentures
U.S.-based manufacturing Company XYZ is looking to deliver finished goods to ABC Company in a developing nation. The credit department wants to ensure collectability and has asked the treasury department for guidance. The desired solution may impact days sales’ outstanding but will have the lowest credit risk to Company XYZ. What will treasury recommend?
The term "factoring" refers to a:
