The finance department in a business is responsible for

• Recording customer and supplier transactions and preparing profit and loss statements

• Providing managers and owners and the tax department with financial reports

• Forcasting cashflow and working capital and use them to make financial decisions

• All of the above

Decisions about sources of capital and borrowing money are the role of the

• Finance Department, CFO and Accountant

• the CEO (Chief Executive Officer)

• the CFO (Chief Financial Officer)

• the CEO, Shareholders and the Finance Department

Businesses need finance departments to

• write cheques

• reconcile earnings and expenses

• to deal with all aspects of money

• provide assistance to the CFO and the CEO

Answer explanation

Making money is a legal requirement of a business. No money, no finance.

No finance department.

The three main reasons businesses need money is

• start up business expenses

• start up, operational, expansion expenses and increase working capital

• pay directors, managers and staff wages and benefits

• buy materials to make products

Start up capital is

• the city in you launch your business

• the cost of your new business logo and brand

• the city in which your business has its bank account when you launch

• finance that funds your business set up and the first year of operations

Some of the finance department's tasks in business expansion would include

• deciding how to fund capital purchases

• details of cash, loans or equity to takeover or merge

• preparing taxation and other historical financial reports

• deciding on the type of new machinery to purchase

The finance department must ensure the "life blood of the business" is enough to maintain and grow business operations. What is the "life blood"?

• a postitive working staff and management team

• a highly successful brand that is socially and environmentally active

• cash in the bank to pay expenses, including tax and shareholder dividends

• available cash and liquid assets or working capital that may be used to fund daily and monthly operations

Capital expenditure is money spent on

• items that will contribute to the business for more than one year

• is reported in the balance sheet

• decreases the trading profit

• is highlighted in the profit and loss statement

Revenue expenditure may be described as

• marketing expenses because they help to increase revenue

• sales department wages because this is a cost of generating revenue

• all expenses related to the purchase of products or raw materials from which the business makes revenue

• expenses that apply to the current year and appear on the profit and loss statement

Two of the major sources of business finance are categorised as

• long and short term

• bank and equity

• retained profits and equity

• external and internal