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

Which of the following is a typical responsibility of the financial control function, as opposed to the treasury function, within a business?

Preparing statutory financial statements and maintaining accounting records is a financial control task. Treasury instead manages funding, cash investment and risk such as currency exposure, so negotiating bank facilities, hedging and investing surplus cash all belong to treasury rather than financial control.

  1. APreparing statutory financial statements and maintaining accounting recordsCorrect
  2. BNegotiating short-term borrowing facilities with banks
  3. CManaging foreign exchange exposure through hedging
  4. DDeciding the investment of surplus cash in money market instruments

Explanation

Financial control deals with recording transactions, maintaining ledgers and preparing financial statements. The other options (borrowing facilities, hedging, investing surplus cash) are treasury activities concerned with managing funds and financial risk.

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