ACCA Applied Knowledge · Business and Technology · Accounting and finance functions within business organisations
Which of the following is the main responsibility of the treasury function in a large business?
The treasury function manages the organisation's liquidity, funding and financial risks such as interest rate and foreign exchange exposure. Preparing statutory accounts and processing invoices are financial accounting activities, not treasury responsibilities, so they are not its main role.
- APreparing the statutory financial statements for publication
- BManaging the organisation's liquidity, funding and exposure to financial risks such as interest rate and currency movementsCorrect
- CRecording and coding purchase invoices in the payables ledger
Explanation
Treasury deals with liquidity management, borrowing and investment, and the hedging of interest rate and foreign exchange risks. Preparing statutory accounts is a financial reporting task, and processing purchase invoices is a transaction processing task in financial accounting.
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