REVENUE GENERATION: FINAL EXAMINATION

What is the primary responsibility of a local treasury office?

• Managing local government investments

• Collecting local taxes and fees

• Distributing social services

• Issuing local ordinances

Which of the following is a key component of a local treasury’s cash management system?

• Asset allocation

• Cash flow forecasting

• Credit risk assessment

• Equity investment

What is the purpose of a treasury’s internal control system?

• To ensure financial statements are accurate

• To manage employee performance

• To prevent fraud and errors

• To increase tax revenues

Which of the following best describes the role of a treasury management system (TMS)?

• It is used for human resource management.

• It helps in managing financial assets and liabilities.

• It tracks inventory levels.

• It manages customer relationships.

What is a common tool used in cash forecasting?

• SWOT analysis

• Budget variance report

• Historical data analysis

• Market research survey

Which law typically governs the operations of local treasuries?

• Commercial Code

• Civil Code

• Local Government Code

• Tax Code

What is the main objective of liquidity management in local treasury operations?

• Maximizing long-term investments

• Ensuring adequate cash to meet obligations

• Increasing profitability

• Reducing tax liabilities

Which document is essential for the reconciliation of treasury transactions?

• Sales invoice

• Bank statement

• Employee timesheet

• Purchase order

In local treasury operations, what is the importance of fund allocation?

• To diversify investments

• To ensure funds are used for their intended purposes

• To increase local tax rates

• To reduce administrative costs

What is a common method for local treasuries to invest surplus funds?

• Real estate

• Government bonds

• Corporate stocks

• Foreign currencies