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

Which of the following is the primary responsibility of the treasury function in a large business, as distinct from the financial control function?

The treasury function's main role is managing liquidity, funding and financial risks such as interest rate and currency exposure. Preparing statements, processing invoices and calculating variances belong to financial control, payables and management accounting, so they are not specific treasury responsibilities.

  1. APreparing the statutory financial statements and period-end journals
  2. BManaging liquidity, funding and exposure to interest rate and currency riskCorrect
  3. CProcessing supplier invoices and payments within credit terms
  4. DCalculating standard cost variances for production departments

Explanation

Treasury focuses on managing cash, liquidity, borrowing, investment and financial risks such as interest rate and foreign exchange exposure. Preparing financial statements and variance analysis are financial control and management accounting tasks, and processing invoices is part of payables administration.

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