The Finance Function BENV

The most appropriate description of the finance function in an organisation is:

• It is limited to cash handling and the raising of finance

• it is limited to financial records and financial reports

• It deals with financial records, financial reports and customer marketing

• It deals with cash, financial records, financial reports, costing and budgets

Which of the following would be considered an external stakeholder of a limited company?

• HMRC

• The board of directors of the company

• The company's bank

• The customers of the business

• The suppliers of the business

A financial accountant is a person who:

• Prepares the financial statements of a business

• Sets budgets for the next financial year

• Checks the accounting procedures used within a business

An ______ is normally an employee of the organisation being audited

• External auditor

• Internal auditor

An ______ should be a member of an independent firm of accountants

• External auditor

• Internal auditor

The meaning of effective working is:

• Being successful in achieving what you set out to do

• Completing what you have to do as soon as possible

• Creating the maximum effect in order to improve performance

• Always complying with the requests of colleagues

Which one of the following is the most accurate definition of efficency?

• To complete a job as quickly as possible at all costs

• To complete a job with the minimum of wasted time, effort or expense

• To complete a job exactly as described in the Policies and Procedures

• To complete a job using the cheapest way of doing it

Which two of the following are qualities of an effective communication?

• It needs to be made as quickly as possible

• It must be made with an appropriate timescale

• It needs to be made using language appropriate to the situation

• It needs to be made using formal and complex business language

The policies and procedures for the finance function are likely to include:

• Details of annual appraisals of finance staff

• Details of the authorisation needed for business purchases

• Records of customer names and addresses

• Passwords for all the computers in the business

Which of the following is the most accurate definition of solvency of a business

• Receiving all customer payments on the due date

• Having a lot of money in the bank

• Being able to pay all company debts when they are due

• Delaying paying money into the bank as soon as it is received