Team Forward! Cash Management Test
- 1.
Working capital is defined as:
- A.
Total assets minus total liabilities
- B.
Total assets minus equity
- C.
Current assets minus current liabilities
- D.
Current assets minus long-term liabilities
- E.
None of the above
Correct Answer
C. Current assets minus current liabilitiesExplanation
Working Capital is a measure of how much in liquid assets a company has available to grow, expand and invest in their business. Working Capital can be positive or negative depending on how much debt a company is carrying.Rate this question:
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- 2.
Lockbox is a product that helps clients with their:
- A.
Receivables
- B.
Reporting
- C.
Payables
- D.
Trade Services
- E.
None of the above
Correct Answer
A. ReceivablesExplanation
Clients who receive a large volume of payments via check require significant time and resources to process these receivables. A great alternative to offer clients is a Lockbox. Payments are sent directly to the Lockbox and RBS Citizens will process the checks and notify the client once payments have been posted to their account.Rate this question:
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- 3.
Positive pay protects against:
- A.
Fraudulent endorsement
- B.
Holder in due course
- C.
Stale date
- D.
Altered check amount
- E.
None of the above
Correct Answer
D. Altered check amountExplanation
To protect clients from check fraud, Positive Pay will allow them to view potentially fraudulent transaction before they impact their accounts. Check amounts that do not match a client’s written checks will be reported as exceptions, and clients will be able to decide whether these items get paid or returned.Rate this question:
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- 4.
What best reduces the risk of internal fraud?
- A.
Implementing positive pay
- B.
Separating disbursements and account reconcilement duties
- C.
Payee verification
- D.
Blocking unauthorized ACH debits
- E.
None of the above
Correct Answer
B. Separating disbursements and account reconcilement dutiesExplanation
INTERNAL fraud involves a client’s own employees defrauding the company. Separation of duties can help to minimize the risk, as two employees would need to be colluding. The other three choices refer to ways to minimize EXTERNAL fraud.Rate this question:
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- 5.
A company's treasurer can improve the cash turnover ratio by which of the following?
- A.
Converting paper-based supplier payments to ACH
- B.
Deferring customer billings to the first of the following month
- C.
Utilizing controlled disbursement services
- D.
Replacing paper-based customer invoices with EDI
- E.
None of the above
Correct Answer
D. Replacing paper-based customer invoices with EDIExplanation
CFG’s Electronic Data Interchange (EDI) service enables you to electronically send and receive payments and associated information in a standardized format. Cash forecasting is more accurate by eliminating mail time uncertainty.Rate this question:
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- 6.
Which of the following statements best describes the benefit of an ERP system?
- A.
Eliminates the need for Treasury to merge data obtained from external sources
- B.
Improves controls by using duplicate copies of information on separate databases
- C.
Lowers banking fees by reducing costs associated with straight-through processing
- D.
Allows companies to eliminate the manual processing and rekeying of information
- E.
None of the above
Correct Answer
D. Allows companies to eliminate the manual processing and rekeying of informationExplanation
Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization. ERP systems automate this activity with an integrated software application. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.
As such, companies no longer need to enter information into external stakeholder systems as well as their own data warehouses.Rate this question:
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- 7.
Which of the following is not a benefit of cash management to a CFO?
- A.
Decreased fraud risk
- B.
Efficient management of payables and receivables
- C.
Increased Days Sales Outstanding
- D.
Improved working capital management
- E.
None of the above
Correct Answer
C. Increased Days Sales OutstandingExplanation
Cash management at its core is focused on helping clients effectively manage receivable, payable and reporting needs. Through this efficient payable and receivable management, clients can improve their working capital. Through products such as positive pay, customers can decrease their fraud risk.Rate this question:
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- 8.
Which of the following products can help a client manage their receivables?
- A.
Controlled Disbursement
- B.
Zero Balance Account
- C.
Positive Pay
- D.
Account Reconciliation
- E.
None of the above
Correct Answer
B. Zero Balance AccountExplanation
Zero Balance Accounts help clients separate funds coming into their business for tracking and reporting purposes. For example, a company might want to separate credit card payments from other incoming receivables. These payments would be deposited into the ZBA account, but roll up to a master accountRate this question:
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- 9.
Why is it important to get a prospect's account analysis statement when collecting other financial information from a company? It gives the Cash Management Sales Rep the ability:
- A.
To determine volumes and cross-sell potential
- B.
To undoubtedly reduce fees paid by the client
- C.
To evaluate a client's overall profitability
- D.
Both a and b
- E.
Both a and c
- F.
Both b and c
Correct Answer
E. Both a and cExplanation
Receiving an account analysis statement is important to help the Cash Management Sales Specialist to see what services a prospect is using, which can help determine a client’s profitability. The statement also allows Cash Management to suggest new products by examining volumes and current products. While switching to RBS Citizens may result in decreased fees to the client, this is not a certainty and is not the reason it is important for the Cash Management Sales Specialist to see the statement.Rate this question:
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- 10.
Hard fees + soft fees =
- A.
P*V
- B.
H*S
- C.
ECR
- D.
ERP
- E.
None of the above
Correct Answer
A. P*VExplanation
A client’s ECR determines the amount they pay in hard fees. Soft fees are those fees covered by balances. The combination of the two is called P*V, or Price*Volume.Rate this question:
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- 11.
What is the name of RBS Citizens' online treasury platform?
- A.
Account Analysis
- B.
Money Manager GPS
- C.
AccessMOBILE
- D.
AccessXCHANGE
- E.
None of the above
Correct Answer
B. Money Manager GPSExplanation
MMGPS is a web-based information reporting and transaction initiation system which provides customers with: the ability to obtain multi-bank multi-currency account information via previous- and current-day reports; receive alerts on their CM services; initiate wires, ACH, internal transfers and stop payments; six months of imaged checks, RDI and positive pay.Rate this question:
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- 12.
Which of the following questions is least useful if you’re trying to discover whether or not a client needs lockbox services?
- A.
How many payments a day/week do you receive from your customers?
- B.
How many locations does your business have that receive check payments?
- C.
What percentage of your receipts are checks vs. coin and currency?
- D.
Would it be valuable to have a way to get receivables deposited faster and available sooner?
- E.
How much time does it take your staff to reconcile deposits?
- F.
Are you worried about identity theft?
Correct Answer
F. Are you worried about identity theft?Explanation
Lockbox services are beneficial to clients who receive many check payments from buyers and express frustration in check processing time.Rate this question:
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- 13.
In a meeting with XYZ, Inc., the client mentions to you that they would like to decrease their exposure to check fraud. Which category below would have the product(s) that meet this need?
- A.
Merchant Services
- B.
Trade Services
- C.
Payables
- D.
Reporting
- E.
None of the above
Correct Answer
C. PayablesExplanation
Clients who are interested in reducing check fraud exposure are worried that the checks they are writing may be altered or otherwise fraudulently deposited. Positive pay, a payables product, could meet their needs.Rate this question:
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- 14.
Thinking about today's economy, which of the following best reflects what business owners / CEOs / CFOs are thinking?
- A.
Owners are generally optimistic about their business’ opportunities to survive and/or grow.
- B.
Many companies are ready to invest in their businesses right now.
- C.
Owners want to check their cash position every day.
- D.
Business owners frequently worry about fraud but don't do everything they can do to prevent it.
- E.
All of the above
- F.
None of the above
Correct Answer
E. All of the aboveExplanation
CEOs, CFOs and Business Owners have a lot on their minds today, from growing their business, developing new products and investments to protecting and monitoring their cash. As RMs, we can act as their trusted advisor to help them make business decisions to achieve their goals.Rate this question:
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- 15.
Which of the following services do not totally rely upon or involve electronic transmissions?
- A.
ACH
- B.
EDI
- C.
Letters of Credit
- D.
Wire transfers
- E.
AccessXCHANGE
Correct Answer
C. Letters of CreditExplanation
A Letter of Credit is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. This does NOT rely on electronic transmissions.Rate this question:
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- 16.
If a client suggests he may need to lay off some accounting staff and therefore needs to improve productivity, which of the following would help efficiency?
- A.
EZ Deposit
- B.
Account Reconciliation
- C.
Deposit Reconciliation
- D.
Commercial Cards
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
Many cash management products can automate the collection of receivables and issuing payables. This drives greater efficiencies as human capital is reduced or in some cases no longer needed to collect and process payments.Rate this question:
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- 17.
ECR stands for:
- A.
Easy Check Reconciliation
- B.
Earnings Credit Roster
- C.
Exchange Currency Rate
- D.
Exchange Credit Rate
- E.
None of the above
Correct Answer
E. None of the aboveExplanation
A client's ECR, or Earnings Credit Rate, is a daily calculation of interest paid on idle funds that reduce bank service charges. A calculated amount is then used to pay for banking fees. The ECR helps determine what a client's hard fees will be.Rate this question:
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- 18.
Which of the following cash management solutions is least used by professional and business services firms?
- A.
Analysis checking
- B.
ZBA
- C.
Money Manager GPS
- D.
Merchant Services
- E.
ACH payments
Correct Answer
D. Merchant ServicesExplanation
Merchant Services are most commonly used by retail organizations who have more need of POS systems. Professional and Business Services firms typically accept payment via checks, wires or ACH rather than debit or credit card.Rate this question:
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- 19.
Money Manager GPS : Management and Reporting ::
- A.
HSA : Receivables
- B.
EZ Deposit : Collections
- C.
Sweeps : Payables
- D.
Lockbox : Payables
Correct Answer
B. EZ Deposit : CollectionsExplanation
MMGPS is RBS Citizens’ ERP system, designed to help a client with their management and reporting needs. EZ Deposit helps a client to easily manage deposits, or collections.Rate this question:
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- 20.
The name of the sales campaign associated with this exam is:
- A.
Team Up!
- B.
Team Ahead!
- C.
Team Forward!
- D.
Team Citizens!
- E.
None of the above
Correct Answer
C. Team Forward!Explanation
The correct answer is "Team Forward!" because it is the only option that matches the given information. The question asks for the name of the sales campaign associated with the exam, and "Team Forward!" is the only option that fits this description. The other options, "Team Up!", "Team Ahead!", and "Team Citizens!" do not match the given information and are therefore incorrect.Rate this question:
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- 21.
AccessMOBILE is accessible:
- A.
For free
- B.
On iPhone, Droid & Blackberry devices
- C.
To anyone, regardless of whether they have an MMGPS account or not
- D.
Without a password
- E.
All of the above
- F.
None of the above
Correct Answer
A. For freeExplanation
In order to use accessMOBILE, clients need to be set up on MMGPS and have a password. Currently, accessMOBILE is only available on the iPhone, with Droid & Blackberry releases coming soon. accessMOBILE can be downloaded for free from the iTunes store.Rate this question:
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- 22.
Benefits of EZ Deposit include:
- A.
Eliminates the need to photocopy checks prior to deposit
- B.
Can make check deposits without going to a branch
- C.
Can deposit checks after normal banking hours
- D.
None of the above
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
EZ Deposit allows clients to scan checks they wish to deposit and upload the file. The transactions are processed & cleared on the ACH network and/or as IRDs. This simplifies check depositing, and allows clients all the benefits listed above.Rate this question:
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- 23.
Money Manager GPS is beneficial to the client for which of the following reasons? It allows the client to:
- A.
Improve staff productivity and provide consolidated account information
- B.
Initiate multiple transaction types through a single online banking platform
- C.
View domestic and international account information for all accounts and banking relationships
- D.
Customize formats and reports of exported data
- E.
All of the above
- F.
None of the above
Correct Answer
E. All of the aboveExplanation
MMGPS offers clients many benefits, only a few of which are listed here. As RBS Citizens primary cash management platform & product, clients who take advantage of the MMGPS services see a comprehensive picture of their business's financial information and have access to tools which effectively manage cash flow.Rate this question:
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- 24.
Which of the following is most beneficial to a client whose needs include reducing check clearing uncertainty, maximizing earning potential of cash resources, reducing loan interest expense, and minimizing risk of overdraft & fees?
- A.
Lockbox
- B.
Controlled Disbursement
- C.
Deposit Reconciliation
- D.
AccessXCHANGE
- E.
None of the above
Correct Answer
B. Controlled DisbursementExplanation
Controlled Disbursement helps a client minimize idle balances in disbursement accounts.Rate this question:
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- 25.
When should you ask a client/prospect for their Account Analysis statement?
- A.
At the discovery call
- B.
Never, it's a private piece of information
- C.
After the loan closes
- D.
After the client/prospect meets with the Cash Management Sales Specialist
- E.
None of the above
Correct Answer
A. At the discovery callExplanation
The account analysis statement is an important tool for the Cash Management Sales Specialist to see prior to meeting the client. While collecting financial information needed for the loan process, the RM should ask for a copy of the analysis statement to provide to the Sales Specialist.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
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Mar 06, 2012Quiz Created by
CommercialBankin
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