Unit 3:Introduction to FP&A: Career in FP&A Quiz

What is the main function of the FP&A department?

• Preparing and analyzing financial statements for tax purposes

• Developing financial plans, budgets, and forecasts to support business decisions

• Managing employee payroll and benefits

• Handling customer service and support

Which of the following best describes the role of an FP&A analyst?

• Recording daily financial transactions

• Conducting financial forecasting and variance analysis

• Managing inventory and supply chain operations

• Designing and implementing marketing strategies

Why is budgeting an essential function of FP&A?

• It ensures that a company does not pay taxes

• It helps a company allocate resources efficiently and plan for future growth

• It focuses only on historical financial performance

• It allows a company to ignore financial risks

What is the primary purpose of the planning function in FP&A?

• To ensure accurate tax filings and compliance with regulations

• To develop financial strategies that align with the company's long-term goals

• To record daily financial transactions and prepare invoices

• To manage customer relationships and sales performance

5. Which tool is commonly used by FP&A professionals for financial modeling?

• Excel

• Tableau

• Power BI

• QuickBooks

What is the main objective of financial forecasting in FP&A?

• To estimate future financial performance based on historical data and market trends

• To track employee attendance and payroll expenses

• To ensure compliance with government regulations and tax laws

• To design marketing campaigns for new product launches

What does scenario planning in FP&A help a company achieve?

• Determine potential financial outcomes based on different business conditions

• Reduce employee turnover

• Increase website traffic and online sales

• Improve product packaging designs

What is the primary difference between FP&A and Accounting?

• A) FP&A focuses on analyzing future financial trends, while Accounting focuses on recording past financial transactions

• B) FP&A only deals with tax compliance, while Accounting prepares budgets

• C) FP&A is a non-financial role, while Accounting is purely financial

• D) FP&A handles payroll, while Accounting manages supplier relationships

What does variance analysis help an FP&A professional determine?

• The difference between projected and actual financial performance

• The best way to reduce customer complaints

• The number of new employees a company should hire

• The effectiveness of a social media marketing campaign

What is the main purpose of management reporting in FP&A?

• To provide company executives with financial insights for strategic decision-making

• To prepare tax documents for government compliance

• To manage day-to-day accounting transactions

• To oversee company-wide hiring and recruitment efforts