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Question 1 of 10
1. Question
In the USA, the cash management function is usually managed by the treasure, who reports to:
Correct
In the USA, the cash management function is usually managed by the treasurer (who often has a treasury or banking background), who reports to the chief financial officer (who has an accounting background)
Incorrect
In the USA, the cash management function is usually managed by the treasurer (who often has a treasury or banking background), who reports to the chief financial officer (who has an accounting background)
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Question 2 of 10
2. Question
Which statement best describes cash management from a corporate perspective:
Correct
The following is a working definition of cash management from a corporate perspective: The effective planning, monitoring and management of liquid and/or near liquid resources.
Incorrect
The following is a working definition of cash management from a corporate perspective: The effective planning, monitoring and management of liquid and/or near liquid resources.
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Question 3 of 10
3. Question
Select more than one answer:
What are the unusual functions performed by the Cash Manager?Correct
The usual functions performed by the cash manager include:
Day‐to‐day cash control Having the information to monitor balances and the tools to manage liquidity to ensure that the company has enough cash or near cash reserves to meet the short‐term obligations of the company.
Bank account structure:
Having an efficient account structure that minimizes borrowing costs, maximizes interest earned and facilitates liquidity management.
Collections:
Having an efficient account structure for collections, concentration and managing items in the course of collection.
Short‐term investment:
Optimising the use of surplus funds with investments of less than one‐year maturity, including bank and money market depositsIncorrect
The usual functions performed by the cash manager include:
Day‐to‐day cash control Having the information to monitor balances and the tools to manage liquidity to ensure that the company has enough cash or near cash reserves to meet the short‐term obligations of the company.
Bank account structure:
Having an efficient account structure that minimizes borrowing costs, maximizes interest earned and facilitates liquidity management.
Collections:
Having an efficient account structure for collections, concentration and managing items in the course of collection.
Short‐term investment:
Optimising the use of surplus funds with investments of less than one‐year maturity, including bank and money market deposits -
Question 4 of 10
4. Question
Cash management is mainly related to:
Correct
Cash management focuses on the day‐to‐day effective use of cash in all its forms, or as it is sometimes defined: Having the right amount of money, in the right currency, in the right place, at the right time’ –to which should also be added ‘with the right information.
Incorrect
Cash management focuses on the day‐to‐day effective use of cash in all its forms, or as it is sometimes defined: Having the right amount of money, in the right currency, in the right place, at the right time’ –to which should also be added ‘with the right information.
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Question 5 of 10
5. Question
Select TWO benefits of a good cash management:
Correct
The major benefits include:
• better control of financial risk
• opportunity for profit
• strengthened balance sheet
• increased confidence of:
customers, suppliers, shareholders
• improved operational efficiencyIncorrect
The major benefits include:
• better control of financial risk
• opportunity for profit
• strengthened balance sheet
• increased confidence of:
customers, suppliers, shareholders
• improved operational efficiency -
Question 6 of 10
6. Question
Select more than one answer:
Good cash management techniques are reflected in:Correct
Good cash management techniques are reflected in the balance sheet, as well as in the profit and loss account
Incorrect
Good cash management techniques are reflected in the balance sheet, as well as in the profit and loss account
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Question 7 of 10
7. Question
Good cash management offers an opportunity to reduce costs and enhance:
Correct
Good cash management offers an opportunity to reduce costs and enhance financial returns.
Incorrect
Good cash management offers an opportunity to reduce costs and enhance financial returns.
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Question 8 of 10
8. Question
Select more than one answer:
What factors are responsible for improving a company’s balance sheet?
Correct
Reduced borrowing costs, increased return on investments, improved receivables and payables practices – all these improve a company’s balance sheet
Incorrect
Reduced borrowing costs, increased return on investments, improved receivables and payables practices – all these improve a company’s balance sheet
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Question 9 of 10
9. Question
Select more than one answer:
Cash managers use the company’s balance sheet to:
Correct
Cash managers use the company’s balance sheet to measure liquidity, leverage and performance, as well as to improve the current accounts.
Incorrect
Cash managers use the company’s balance sheet to measure liquidity, leverage and performance, as well as to improve the current accounts.
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Question 10 of 10
10. Question
Select TWO reasons for Shareholder’s interest in a company ’s cash management record:
Correct
Shareholders are interested in a company’s cash management record for two reasons. Firstly, they will want to verify that the company in which they are investing will have enough cash to fund working capital and to continue in business. Secondly, they want to be assured that there is enough cash to pay them a dividend
Incorrect
Shareholders are interested in a company’s cash management record for two reasons. Firstly, they will want to verify that the company in which they are investing will have enough cash to fund working capital and to continue in business. Secondly, they want to be assured that there is enough cash to pay them a dividend