,FIN3703 PAST
EXAMINATION
QUESTION
PAPERS AND
MCQ
Financial Management (University of South Africa)
, QUESTION 1
Treasury management is executed in any business, irrespective of its
size, structure or industry. Which one of the following statements does
NOT apply in the definition of corporate treasury management?
a. Management of cash, liquidity, and risk exposure.
b. Management of foreign currency and cash flow.
c. Setting strategic organisational goals and objectives.
d. Management of cash surplus and cash
deficit. The correct answer is C
Treasury management is defined as management of cash flow (cash
surplus and deficit), liquidity, risk exposure and foreign currencies
according to the treasury policies and guidelines stipulated by the board
of directors. Setting strategic organisational goals and objectives are the
responsibilities of the company executives such as the board of directors
and the CEO. Treasury mandate is to implement the stipulated
strategies, objectives and goals outlined in treasury policy by the board
of directors. All students were awarded a free mark for this question.
QUESTION 2
The key activities of treasury management include all of the following,
EXCEPT …
a. collection of cash.
b. investment of cash deficit.
c. disbursement of cash.
d. profit and price determination
A. a b
B. b d
C. a c d
D. a b c
The correct option is B because they do not refers to the definition of
treasury managment .
The answer to this question is also obtained or clarified in the definition
of treasumanagement in question 1. Profit determination executed at the
cost center (accounting department) and the marketing strive to position
the product at the appropriate price. This means that option D , or that
statement is not prescilely the part of activities exercised in treasury.
Option B is incorrect because cash deficit is financed through various
lines of credits facilities, is not invested as the statement indicates.
EXAMINATION
QUESTION
PAPERS AND
MCQ
Financial Management (University of South Africa)
, QUESTION 1
Treasury management is executed in any business, irrespective of its
size, structure or industry. Which one of the following statements does
NOT apply in the definition of corporate treasury management?
a. Management of cash, liquidity, and risk exposure.
b. Management of foreign currency and cash flow.
c. Setting strategic organisational goals and objectives.
d. Management of cash surplus and cash
deficit. The correct answer is C
Treasury management is defined as management of cash flow (cash
surplus and deficit), liquidity, risk exposure and foreign currencies
according to the treasury policies and guidelines stipulated by the board
of directors. Setting strategic organisational goals and objectives are the
responsibilities of the company executives such as the board of directors
and the CEO. Treasury mandate is to implement the stipulated
strategies, objectives and goals outlined in treasury policy by the board
of directors. All students were awarded a free mark for this question.
QUESTION 2
The key activities of treasury management include all of the following,
EXCEPT …
a. collection of cash.
b. investment of cash deficit.
c. disbursement of cash.
d. profit and price determination
A. a b
B. b d
C. a c d
D. a b c
The correct option is B because they do not refers to the definition of
treasury managment .
The answer to this question is also obtained or clarified in the definition
of treasumanagement in question 1. Profit determination executed at the
cost center (accounting department) and the marketing strive to position
the product at the appropriate price. This means that option D , or that
statement is not prescilely the part of activities exercised in treasury.
Option B is incorrect because cash deficit is financed through various
lines of credits facilities, is not invested as the statement indicates.
