Key terms the finance function

The finance department of an organisation deals with

• financial transactions

• management accounting

• treasury management

• operational procedures

The definition of financial accounting is

• analysis and reporting of past financial transactions

• providing projected financial information

• external checking of financial records

What is meant by the term efficiency?

• Achieving the right result with the minimum of wasted time, effort or expense

• being successful in what you set out to do

What is meant by the term solvency?

• being able to repay your debts when they are due

• having a lot of money in the bank

What is external auditing?

• external checking of the financial records by independent accountants

• checking the financial records by an employee of the organisation

• process of recording, analysing and reporting financial information

What is a code of conduct

• define acceptable and unacceptable staff behaviour

• a manual that sets out the procedures for accounting within a business

What is the meaning of effective working?

• being successful in achieving what you set out to do

• achieving the right result with the minimum of wasted time and effort