AFP Cheat Sheet 2026

The 30 highest-yield AFP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which management approach in Association for Financial Professionals emphasizes continuous improvement through small, incremental changes? → Kaizen methodology
2. What is the fundamental accounting equation? → Assets = Liabilities + Equity
3. In AFP, what is the most important aspect of advanced concepts? → Understanding core principles and their practical applications
4. In Association for Financial Professionals, what role does continuing education play in working capital? → To keep professionals current with evolving standards, technologies, and best practices
5. What is a repurchase agreement (repo) primarily used for in corporate treasury investing? → Short-term collateralized borrowing or overnight investing
6. In Association for Financial Professionals, what does the PDCA cycle stand for? → Plan, Do, Check, Act
7. In Association for Financial Professionals, what is the primary function of strategic planning in risk management? → To set long-term goals and determine the best approach to achieve them
8. The current ratio is calculated as: → Current assets divided by current liabilities
9. A company's operating cash flow is $5 million, capital expenditures are $2 million, and total debt is $20 million. What is its free cash flow? → $3 million
10. What is a Suspicious Activity Report (SAR) in the context of BSA/AML compliance? → A report filed with FinCEN when a financial institution suspects money laundering or fraud
11. What is the purpose of financial reconciliation in Association for Financial Professionals? → To verify that financial records match and identify any discrepancies
12. Days Payable Outstanding (DPO) is calculated as: → Accounts payable divided by daily cost of goods sold
13. How does continuous improvement apply to AFP advanced concepts? → Through regular evaluation of practices and implementation of evidence-based updates
14. Which type of U.S. government security is most commonly used by corporate treasury to meet liquidity needs? → Treasury bills (T-bills)
15. What is the primary purpose of segregation of duties in treasury operations? → To prevent fraud by ensuring no single person controls all steps of a transaction
16. Under the AFP's safety-liquidity-yield framework, which objective takes the highest priority? → Safety
17. What is the primary objective of capital markets in Association for Financial Professionals? → To ensure competence and proficiency in core capital markets concepts
18. Under Basel III, what is the Liquidity Coverage Ratio (LCR) designed to ensure? → Banks hold enough high-quality liquid assets to survive a 30-day stress scenario
19. What is the primary consideration when implementing new technology in Association for Financial Professionals? → Ensuring compatibility with existing systems and meeting user requirements
20. Which of the following is a primary source of short-term liquidity for most corporations? → Revolving credit facility
21. Which of the following is an advantage of a committed revolving credit facility over an uncommitted line of credit? → The bank is legally obligated to fund draws as long as conditions are met
22. In Association for Financial Professionals, what is the primary function of strategic planning in treasury management? → To set long-term goals and determine the best approach to achieve them
23. Which backup strategy in Association for Financial Professionals provides the most comprehensive data protection? → Regular incremental backups combined with periodic full backups
24. Which risk is most relevant when a corporate treasury invests in foreign currency-denominated securities? → Foreign exchange risk
25. What is a key benefit of implementing performance metrics in Association for Financial Professionals risk management? → Providing measurable data to track progress and inform decision-making
26. Why is interdisciplinary collaboration important in AFP advanced concepts? → It brings diverse perspectives that enhance problem-solving and outcomes
27. Which backup strategy in Association for Financial Professionals provides the most comprehensive data protection? → Regular incremental backups combined with periodic full backups
28. What is the purpose of access controls in Association for Financial Professionals technology solutions? → To ensure only authorized users can view or modify sensitive data and systems
29. In Association for Financial Professionals, what does the term "net present value" (NPV) represent? → The difference between the present value of cash inflows and outflows over time
30. What is 'structuring' (smurfing) in the context of BSA/AML regulations? → Breaking up large cash transactions into smaller ones to evade CTR reporting thresholds