BOM .

A couple wants to buy a house in five years so they are estimating future mortgage costs and developing a savings plan. What are they doing?

• Financial controlling

• Financial planning

• Budgeting

• Cost management

What is the key purpose of a budget in financial controlling?

• To limit expenditure

• To forecast revenues

• To compare actual performance with expected performance

• To calculate taxes

What objective of financial controlling typically includes controlling and reducing costs within an organisation, ensuring efficient resource allocation?

• Financial performance analysis

• Cash flow management

• Cost management

• Profitability

Identify the option which states the importance of financial controlling .

• It allows businesses to monitor and control costs .

• It facilitates financial forecasting and long-term planning.

• It helps to identify and mitigate financial risks.

• All of the above options.

What is the importance of operational efficiency in financial controlling?

• It provides data and insights that support informed decision making.

• It can uncover inefficiencies and areas for improvement in business operations .

• Financial controlling helps to maintain solvency and liquidity of a company.

• It helps to identify and mitigate financial risks

Which financial statement is most commonly used in financial controlling to assess a company’s profitability?

• Balance sheet

• Income statement

• Cash flow statement

• Statement of retained earnings

What does forecasting mean with regards to importance of financial controlling ?

• Facilitating financial forecasting and long-term planning, helping a company to prepare for future challenges and opportunities.

• The ability to meet long-term financial obligations and financial short-term obligations.

• To Analyse past mistakes and taking corrective measures.

• A basis for measuring and evaluating the financial performance of the organisation.

What would happen without financial controlling to any organisation ?

• Legal and compliance issues

• Fast decision making

• Efficient resource allocation

• Minimal risk of fraud and embezzlement