Quiz Bank Treasury

Who is responsible for opening a new bank account?

• GSC Finance Manager
• Regional Treasury Operations Team
• Controlling

What are Non-Preferred Banks?

• Banks that meet minimum credit rating criteria, possess sufficient technological capability and ability to sweep cash balances to a preferred bank
• Banks with low trust rating
• Banks with limited number of services

3M's global payment design for deployed entities requires all payments to be initiated at:

• Bank portal
• Special treasury software
• SAP

What does it mean if we can see book overdrafts on account 305400 (cash reclass)?

• Payments made by the bank which exceed 3M’s available balance
• Outstanding checks issued by 3M, which are not yet presented for clearance T
• Both answers

What are the differences between checks and a draft?

• There are no differences
• For checks, once a check has been released, 3M has relinquished control over the use of that cash. For drafts, control over the cash is not relinquished until the draft is presented for payment
• A draft is payable upon demand

How often 3M requires to reassess the appropriateness of the initial marketable debt security classification?

• once every 3 months
• every month
• once every 6 months

What is reporting Currency?

• Currency used to present The Statement of Financial Position
• Currency used to present consolidated financial statements
• Currency used to present The Profit and Loss Statement

Gains and losses on exchange transaction (at entities other than Global Capital) is recorded in the Profit and Loss Statement on which item?

• Profit before tax
• Expenses
• Cost of Goods Sold

What is functional currency?

• Foreign Currency in which entity did transaction
• The currency of the primary economic environment in which the entity operates
• Currency in which most transactions are settled

Which of the statements is wrong. "Exchange differences related to inter-company service billings must be identified and actioned over the month end period...":

• and booked with Profit Center 4780 to account 7095051 (709505)
• even though they do not impact I/C out of ballance position
• If unresolved, these differences will post to inventory on consolidation, which is incorrect