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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 company, as distinct from the financial control function?

The treasury function manages liquidity, funding and financial risks such as interest rate and currency exposure. Financial control instead prepares financial statements and management accounts, while invoice processing and payroll are routine transaction processing tasks that do not form the core treasury role.

  1. APreparing the statutory financial statements and monthly management accounts
  2. BManaging liquidity, funding and exposure to interest rate and currency risksCorrect
  3. CProcessing supplier invoices and making payments against purchase orders
  4. DCalculating payroll deductions and issuing payslips to employees

Explanation

Treasury focuses on liquidity, funding, investment of surplus cash and management of financial risks such as interest rate and foreign exchange exposure. Preparing financial statements and management accounts is a financial control task, while invoice processing and payroll are routine transaction processing activities.

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