Financial Management Roles and Responsibilities

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Questions and Answers

What is the top financial manager's title in a firm?

Controller

Treasurer

Chief Financial Officer (CFO) (correct)

Financial Manager

The Treasurer is responsible for overseeing taxes, cost accounting, financial accounting, and data processing.

False

What are the two main roles of a Financial Manager in the Treasury department?

Monitoring inflow and outflow of funds, handling investments of excess funds on hand, cash flow forecasting, and arranging loans to meet day-to-day and long-term requirements.

The Financial Manager is responsible for developing plans for the long-term financial __________ of their organization.

goals Signup and view all the answers

Match the following roles with their respective responsibilities:

Treasurer = Oversees cash management, credit management, capital expenditures, and financial planning Controller = Oversees taxes, cost accounting, financial accounting, and data processing Signup and view all the answers

What is one of the Financial Manager's roles in Budgeting and Forecasting?

Preparing financial projections and forecasting Signup and view all the answers

The Financial Manager is responsible for uploading financial statements and calling internal meetings for performance review during Month End Activities.

True Signup and view all the answers

What is one of the responsibilities of a finance manager in taxation and statutory?

Coordinating with auditors and tax consultants for finalization of tax liabilities Signup and view all the answers

The finance manager is responsible for preparing financial reports for external stakeholders.

True Signup and view all the answers

What is the purpose of the debtors ageing report?

To monitor and track the collection of dues Signup and view all the answers

The finance manager is responsible for preparing presentations and performance reports for _______ management.

higher Signup and view all the answers

What is one of the responsibilities of a finance manager in credit control and payables management?

Monitoring collection of dues Signup and view all the answers

Match the following responsibilities with the relevant domain:

Coordinating with auditors and tax consultants = Taxation and Compliance Preparing financial reports for shareholders = Financial Analysis and Reporting Monitoring collection of dues = Credit Control and Payables Management Preparing presentations for higher management = Financial Planning and Decision Making Signup and view all the answers

What is the main goal of investment decisions in financial management?

To maximize the value of investments Signup and view all the answers

Financial management is only important for organizations, not individuals.

False Signup and view all the answers

What is capital budgeting concerned with?

Long-term investments or projects Signup and view all the answers

Financial management involves three types of decisions, including investment decisions, financing decisions, and ______________ decisions.

asset management Signup and view all the answers

Match the following financial management decisions with their descriptions:

Investment Decisions = Deciding which long-term investments or projects to take on Financing Decisions = Deciding how to pay for investments and expenses Asset Management Decisions = Managing day-to-day finances Signup and view all the answers

The goal of financial management is to minimize profits.

False Signup and view all the answers

Study Notes

Role of Financial Manager

A finance manager coordinates with auditors and tax consultants for taxation and statutory compliance.
They ensure timely payment of statutory dues and filing of returns.

Taxation and Statutory

Finalization of tax liabilities (direct and indirect) and preparation of returns (CIT, VAT, WTH, etc.)
Handling ongoing assessments and meetings with statutory departments and auditors.

Credit Control and Payables Management

Monitoring collection of dues and preparation of debtors ageing report.
Revision and estimation of bad debt provision.
Maintaining cordial relationships with customers and vendors.
Coordinating with banks and funding agencies.

Financial Analysis, Presentations, and Reporting

Preparing presentations and performance reports for higher management.
Making specific decisions regarding pricing, expansion, leasing, and purchases.
Preparing reports for shareholders, external stakeholders, and the board.

Roles Within Financial Management

Chief Financial Officer (CFO): The top financial manager within a firm.
Treasurer: Oversees cash management, credit management, capital expenditures, and financial planning.
Controller: Oversees taxes, cost accounting, financial accounting, and data processing.

Budgeting and Forecasting

Preparing financial projections, revisions, and forecastings.
Conducting variance analysis against standards and preparing reports.
Coordinating and communicating with relevant parties.

Treasury

Monitoring inflow and outflow of funds as per organizational requirements.
Handling investments of excess funds and cash flow forecasting.
Arranging loans to meet day-to-day and long-term requirements.

Month-End Activities

Preparing trading accounts, income statements, and balance sheets.
Finalizing provisions, reconciling accounts, and coordinating with branches and parent company.
Uploading financial statements and conducting internal meetings for performance review.

Decisions of Financial Manager

Investment Decisions (Capital Budgeting): Allocating money to maximize value.
Financing Decisions (Capital Structure): Determining how to pay for investments and expenses.
Asset Management Decisions (Working Capital Management): Managing day-to-day finances of the firm.

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Description

This quiz covers the roles and responsibilities of a financial manager, including taxation, statutory compliance, credit control, and payables management. It tests your knowledge of financial management concepts and practices.