BTF 7

Which three of the following are characteristics of management accounting information rather than financial reporting information?

• It is both forward looking and historical

• It is likely to include a cash flow forecast

• It is likely to include budgetary information

• It is governed by statute

• It is primarily used by shareholders

Historically, the role of the finance function at Delbin plc has been viewed primarily in terms of reporting and control. However, the senior management team at Delbin plc are keen on for the finance function to have more role as a business partner. In which of the following should members of the finance function expect to become increasingly involved as a result of the business partnering role?

1-formulating strategies;

2- commercial decision making and negotiations;

3-provision of accurate accounting information.

• (1) and (2) only

• 2 and 3

• 1 and 3

• NOne

Management of working capital is the function of which section

• Financial reporting

• Treasury management

• Management accounting

• Recording financial transactions

Regarding the finance function, preparing internal reporting for planning and control to those charged with management and governance is the main task of:

• Management accounting

• Recording financial transactions

• Financial reporting

• Treasury management

Tom works in the finance function of Bateman Ltd., which trades with many companies around the world. His duties involve managing the company’s foreign exchange requirements. From this it can be seen that Tom is employed by Bateman Ltd in its finance function’s:

• Financial reporting section

• Management accounting section

• Treasury management section

• Financial transaction recording section

Tram plc’s finance function must provide information to management on the company’s balanced scorecard. This role is undertaken as part of Tram plc’s:

• Financial reporting function

• Treasury management process

• Statutory audit requirement

• Performance measurement system

Regarding types of performance measures, the quantity of product produced in relation to the resources put in is included in:

• Profitability measures

• Productivity measures

• Liquidity measures

• Solvency measures

When the finance function works alongside other business functions rather than being a separate function of their own, it means

• Financial innovation

• Business partnering

• Business analysis

• Financial reporting

Harold is an accountant with Farnworth plc. He was asked to join a project team examining the company’s compliance with both IFRS and IASB standards. It appears, therefore, that Harold has been recruited into this project team to exploit his expertise in:

• Financial reporting

• Performance measurement

• Capital budgeting

• Strategic management accounting

Planning by preparing forecasts and budgets belongs to which of the following section in the finance function:

• Management accounting section

• Financial transactions recording section

• Financial reporting section

• Treasury management section