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CA Intermediate · Financial Management and Strategic Management · Treasury and Cash Management

Which of the following is a standard objective of treasury management in a company?

Treasury management aims to ensure funds are available when needed, at minimum cost, while avoiding idle cash. It covers liquidity, fund sourcing, investment of surplus and risk control. Pricing, production profit and audit reporting belong to other functions, not to treasury management.

  1. AMaximising the accounting profit of the production department
  2. BEnsuring availability of funds when required while minimising the cost of funds and idle cash balancesCorrect
  3. CDetermining the selling price of finished goods
  4. DPreparing the statutory audit report

Explanation

Treasury management deals with planning, sourcing and deploying funds, managing liquidity, and controlling financial risk. Its core aim is to have funds available when needed at the least cost, without holding excess idle cash. The other options relate to production, pricing and audit functions, not treasury.

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