CHAPTER 19

TREASURY MANAGEMENT IN A LARGE BUSINESS MAY BE A ______?

• centralised function

• decentralised function

WHICH OF THE FOLLOWING ARE FUNCTIONS CARRIED OUT BY A COMPANY'S TREASURY DEPARTMENT?

• working capital management

• preparation of annual financial statements

• exchange dealing, including futures and options

WHAT TREASURER NEEDS TO KNOW IN FUNDING MANAGEMENT?

• the interest rate

• sources of funds

• whether security would be required

WHY SHOULD TWO OR MORE PEOPLE BE PRESENT WHEN THE POST IS OPENED TO CHARITY?

• to ensure segregation of duties

• to minimise fraud

• to improve the speed of recording items

• to perform spot check on each other's work

WHICH OF THE FOLLOWING IS TRUE FOR ORGANISATION IN A RECESSION?

• all organisation will experience a fall in sales

• organisations will not want to hire new staff

• organisation will find it more difficult to get bank loans

WHICH TWO OF THE FOLLOWING ARE IMPORTANT PROCEDURES TO FOLLOW WHEN HANDLING CASH RECEIPTS?

• ensuring prompt banking of cash

• cheque requisitions

• restriction of access to cash and cheques

• reconciliation of records of cash received and banked

SURPRISE CASH COUNT SHOULD BE PERFORMED BY PETTY CASHIER

• true

• false

WHICH OF THE FOLLOWING ARE THE CASH HANDLING PROCEDURES RELATING TO RECEIPT?

• prompt recording

• proper post-opening arrangement

• conducting spot checks

• preparing budget business plan

At Spruce Ltd one member of staff deals with cash receipts recording whilst another staff member reconciles cash receipts to sales and banking records.

THIS IS AN EXAMPLE OF WHAT?

• segregation of duties

• accountability

• physical cash security

• reconciliation

HOW MUCH SUCCESSIVE QUARTER(S) A GDP NEEDS TO FALL TO MEET RECESSION?

• one

• two

• three