ACCA Applied Knowledge · Business and Technology · Accounting and finance functions within business organisations
Which of the following best describes the purpose of financial control within an organisation?
Financial control ensures that financial resources are used effectively and that actual results are monitored against plans and budgets. Identifying markets, recruiting staff and designing products belong to marketing, human resources and operations, not to the financial control function.
- AEnsuring that financial resources are used effectively and that actual results are monitored against plans and budgetsCorrect
- BIdentifying new overseas markets for the company's products
- CRecruiting and training accounting staff
- DDesigning the company's product range
Explanation
Financial control involves monitoring and comparing actual performance with budgets and plans, safeguarding assets and ensuring resources are used effectively. Market identification, recruitment and product design are the responsibilities of marketing, human resources and operations or product development.
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.
More Accounting and finance functions within business organisations questions
- Which of the following best describes the scope of information typically found in management accounting compared with financial accounting?
- A company's finance director is also responsible for the internal audit team, and the head of internal audit reports only to her. A board me…
- A listed company offers new shares to its existing shareholders in proportion to their current holdings, usually at a discount to the market…
- Which statement about the financial management objective of a profit-seeking company is most accurate?
- A manufacturing company's finance team produces monthly reports comparing actual costs with budget for each department manager, highlighting…
- Which of the following is the primary purpose of the financial accounting function within a business?