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

Which of the following is a typical function of the treasury department of a company, as distinct from the controller's function?

Raising funds and managing banking relationships is a treasury function. Treasury handles fund procurement, cash management, investing surplus and risk management, whereas preparing financial statements, tax computation and cost records belong to the controller's accounting and reporting role.

  1. APreparing the statutory financial statements
  2. BRaising funds and managing banking relationshipsCorrect
  3. CComputing the income-tax liability for filing returns
  4. DMaintaining the cost records of products

Explanation

Treasury deals with raising funds, banking relations, cash management, investment of surplus funds and risk management. Preparation of financial statements, tax computation and cost records are controllership functions, so those options are wrong.

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