AFP Exam CTP Topic 5 Question 9 Discussion

Actual exam question for AFP's CTP exam

Question #: 9
Topic #: 5

[All CTP Questions]

Which of the following is considered a financing decision?

AIssuing medium-term bonds or preferred stock

BComparing risk and return of projects

CAllocating capital among different projects

DDistributing or retaining current earnings

Show Suggested Answer

Suggested Answer: A

by Laurel at May 05, 2025, 05:23 PM

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Annice

9 days ago

Ah, the age-old dilemma - should I spend my money on bonds or buy more cat food? Tough call, but I'll go with A.

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Suzi

10 days ago

I think C) Allocating capital among different projects is more of an investment decision rather than a financing decision.

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Lashaun

12 days ago

Hmm, I was thinking B or C, but you make a good point. A seems like the most obvious financing decision here.

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Marguerita

2 days ago

Yeah, it's important to consider all options when making financing decisions.

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Chi

8 days ago

I agree, A) Issuing medium-term bonds or preferred stock is definitely a financing decision.

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Milly

24 days ago

I believe D) Distributing or retaining current earnings is also a financing decision, as it affects the company's capital structure.

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Laurel

1 months ago

I agree with Leslie, issuing bonds or preferred stock is definitely a financing decision.

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Leslie

2 months ago

I think A) Issuing medium-term bonds or preferred stock is a financing decision.

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Teri

2 months ago

A is definitely the correct answer. Issuing bonds or preferred stock is a classic financing decision.

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Cassandra

4 days ago

C is also a financing decision. Allocating capital among different projects is a key part of financial management.

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Janessa

5 days ago

I think B is also a financing decision. Comparing risk and return of projects is important for making financial decisions.

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Gayla

8 days ago

I agree, A is the correct answer. Issuing bonds or preferred stock is definitely a financing decision.

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