CA Intermediate · Financial Management and Strategic Management · Treasury and Cash Management
Which of the following is a standard objective of treasury management in a firm?
A key objective of treasury management is to ensure funds are available when needed while keeping idle cash to a minimum. This balances liquidity and profitability. Pricing, audit fees and customer count are not treasury functions.
- AMaximising the number of credit customers
- BEnsuring availability of funds when required while minimising idle cash balancesCorrect
- CFixing the selling price of products
- DDetermining the statutory audit fee
Explanation
Treasury management aims at efficient mobilisation, custody and deployment of funds, so cash is available when needed without lying idle. The other options relate to sales, pricing or audit matters, not treasury.
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