TREASURY MANAGEMENT | QUIZ SMART | SCORE
HIGH | GUARANTEED ACCURACY!
1. What are the major objectives of treasury management (Chapter 1) - Answer:
Maintain liquidity
Optimize cash resources
Maintain access to short term financing
Manage investments
Maintain access to medium and long term financing
Manage financial risk
Coordinate financial functions and share financial information
Manage external vendors
2. Which of these objectives make up working capital management (Chapter 1) -
Answer: Maintain liquidity
Optimize cash resources
Maintain access to short term financing
Manage investments
3. Why is effective management of working capital critical to an organization (Chapter 1)
- Answer: Working capital management is the foundation of effective treasury
management. Without access to cash to pay vendors and employees, companies
cannot operate. Many profitable companies have been forces to close their doors
because of insufficient liquidity due to poor cash management.
4. What are the typical responsibilities of a treasurer (Chapter 1) - Answer: Managing
overall financial risk, including FX risk.
Arranging ST and LT external financing
Managing relationships with banks and other service providers
Overseeing day to day liquidity and cash management
Investing for ST and LT
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Developing and implementing treasury policies and procedures
Managing domestic and international payments
5. What are the typical responsibilities of a credit manager (Chapter 1) - Answer: The
credit manager preserves and collects accounts receivable, sets corporate credit
policies, approves the extension of credit terms and exposure to limits to customers and
establishes information systems to monitor accounts receivables.
6. What are some typical activities for which a board of directors might grant authority to
individuals within treasury organizations (Chapter 1) - Answer: Open close and modify
bank accounts
Establish credit facilities
Oversee investments
Issue debt and equity securities
Devise implement and execute risk management strategies
7. What are the 6 tasks involved in daily cash management (Chapter 1) - Answer:
Preparing a cash position worksheet
Monitoring cash balances on deposit at financial institutions
Collecting concentrating and disbursing cash
Investing and borrowing funds on a ST basis when needed
Researching and reconciling exception items such as unexpected charges on bank
accounts missing deposits and uncleared checks
Coordinating efforts with other finance areas such as AR AP tax and accounting
8. What is the downside of making treasury a cost center? (Chapter 1) - Answer: The
downside to making treasury a cost center is that management may focus on the cost of
treasury operations and not the value provided by the function, leading to difficulties in
obtaining appropriate budget and staff
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
HIGH | GUARANTEED ACCURACY!
1. What are the major objectives of treasury management (Chapter 1) - Answer:
Maintain liquidity
Optimize cash resources
Maintain access to short term financing
Manage investments
Maintain access to medium and long term financing
Manage financial risk
Coordinate financial functions and share financial information
Manage external vendors
2. Which of these objectives make up working capital management (Chapter 1) -
Answer: Maintain liquidity
Optimize cash resources
Maintain access to short term financing
Manage investments
3. Why is effective management of working capital critical to an organization (Chapter 1)
- Answer: Working capital management is the foundation of effective treasury
management. Without access to cash to pay vendors and employees, companies
cannot operate. Many profitable companies have been forces to close their doors
because of insufficient liquidity due to poor cash management.
4. What are the typical responsibilities of a treasurer (Chapter 1) - Answer: Managing
overall financial risk, including FX risk.
Arranging ST and LT external financing
Managing relationships with banks and other service providers
Overseeing day to day liquidity and cash management
Investing for ST and LT
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Developing and implementing treasury policies and procedures
Managing domestic and international payments
5. What are the typical responsibilities of a credit manager (Chapter 1) - Answer: The
credit manager preserves and collects accounts receivable, sets corporate credit
policies, approves the extension of credit terms and exposure to limits to customers and
establishes information systems to monitor accounts receivables.
6. What are some typical activities for which a board of directors might grant authority to
individuals within treasury organizations (Chapter 1) - Answer: Open close and modify
bank accounts
Establish credit facilities
Oversee investments
Issue debt and equity securities
Devise implement and execute risk management strategies
7. What are the 6 tasks involved in daily cash management (Chapter 1) - Answer:
Preparing a cash position worksheet
Monitoring cash balances on deposit at financial institutions
Collecting concentrating and disbursing cash
Investing and borrowing funds on a ST basis when needed
Researching and reconciling exception items such as unexpected charges on bank
accounts missing deposits and uncleared checks
Coordinating efforts with other finance areas such as AR AP tax and accounting
8. What is the downside of making treasury a cost center? (Chapter 1) - Answer: The
downside to making treasury a cost center is that management may focus on the cost of
treasury operations and not the value provided by the function, leading to difficulties in
obtaining appropriate budget and staff
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
