Skip to content

ACCA Applied Knowledge · Business and Technology · Accounting and finance functions within business organisations

Which of the following activities is normally the responsibility of the treasury function rather than the financial accounting function?

Managing foreign currency exposure and arranging short-term borrowing is a treasury responsibility. Treasury looks after liquidity, funding and financial risk. Preparing the statement of cash flows and reconciling payables to supplier statements are record-keeping and reporting tasks that belong to the financial accounting function.

  1. APreparing the statement of cash flows at the year end
  2. BManaging foreign currency exposure and arranging short-term borrowingCorrect
  3. CReconciling the payables ledger to supplier statements

Explanation

Treasury manages liquidity, borrowing, investment of surplus cash and currency or interest risk. Preparing the cash flow statement and reconciling payables are accounting tasks that record and report transactions already made.

Did you get it right without looking?

One question tells you little. A timed set on Accounting and finance functions within business organisations shows your real accuracy, how long you take and where you lose marks.

Practise Accounting and finance functions within business organisationsFree diagnostic mock

More Accounting and finance functions within business organisations questions