A company has six fraudulent checks clear its primary disbursement account for a total of $7,652.
The bank agrees to split the loss with the company to maintain a good relationship. As a condition of sharing the expense, the bank requires the company to establish positive pay on its disbursement accounts or have the company absorb the losses on future fraudulent payments.
If the company determines that positive pay is too expensive and decides NOT to implement it, what type of risk financing technique is the company using?

• A.Crime insurance
• B.Risk avoidance
• C.Self-insurance
• D.Risk transfer

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A company transfers funds from its remote accounts by ACH with a one-day settlement and is notified of a same-day credit of $100,000 in one of its accounts. A wire transfer costs $27.75 incrementally. Assuming a
360-day year, which of the following is the minimum rate of interest that must be earned on these funds to justify the cost of a wire transfer?

• A.10.50%
• B.10.00%
• C.8.00%
• D.9.25%

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A company is starting a project to redesign its cash management information systems. What would be an important tool in this effort?

• A.Treasury operations manual
• B.Cash application
• C.ERP software
• D.Treasury workstation

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One of the advantages of raising capital through public offerings is that:

• A.it reduces the costs of managing reporting and disclosure.
• B.large amounts of debt and equity can be raised at the risk-free rate.
• C.large amounts of debt and equity can be raised at prevailing rates.
• D.it reduces fluctuations in the price of capital.

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The lockbox receipt records for one 30-day month are provided below. The opportunity costs are 10%.

What is the annual cost of float rounded to the nearest dollar?

• A.$417
• B.$500
• C.$167
• D.$385

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