PAMANTASAN NG LUNGSOD NG MARIKINA

Treasury Management_Quiz 1

I. Choose the correct category "Financial Controllership or Treasury Management" for each activity. Write FC or TM.
FC 1. Preparation of Financial Statements FC 6. Liaising with External Auditors
FC 2. Implementing Internal Controls FC 7. Making Investment Decisions
TM 3. Optimizing Cash Flow FC 8. Implementing Policies to Ensure Compliance with Accounting Standards
FC 4. Budgeting and Forecasting TM 9. Optimizing Liquidity Position
TM 5. Managing Foreign Exchange Exposure FC 10. Monitoring and Reporting on Financial Performance

II. Read the statements carefully. Choose the correct answer. Write only the letter of your answer.
1. What is the primary responsibility of a treasurer?
a. Marketing b. Financial management
c. Human resources d. Customer service
2. Which of the following tasks is typically not a responsibility of a treasurer?
a. Budgeting b. Cash management
c. Employee hiring d. Investment management
3. The treasurer is responsible for preparing and presenting which financial document?
a. Marketing plan b. Income statement
c. Employee handbook d. Travel itinerary
4. In the context of organizations, what does liquidity management involve?
a. Managing employee relations b. Managing cash and short-term investments
c. Creating marketing strategies d. Developing long-term business plans
5. Which of the following is a key aspect of a treasurer's role in risk management?
a. Social media management b. Compliance with legal regulations
c. Event planning d. Public relations
6. What does the term "cash flow forecasting" refer to in the treasurer's role?
a. Predicting future marketing trends b. Estimating the organization's future cash inflows and outflows
c. Planning employee training programs d. Setting sales targets
7. Which financial statement is often used by treasurers to assess an organization's financial health?
a. Balance sheet b. Income statement
c. Statement of retained earnings d. Cash flow statement
8. What is the treasurer's role in managing investments for an organization?
a. Designing product prototypes b. Making decisions about where to invest surplus funds
c. Managing employee schedules d. Conducting customer satisfaction surveys
9. What is the purpose of internal controls in the treasurer's responsibilities?
a. Managing external communications b. Ensuring compliance with laws and regulations
c. Organizing team-building events d. Designing advertising campaigns
10. Which of the following is an important trait for a treasurer to possess?
a. Graphic design skills b. Attention to detail
c. Public speaking expertise d. Event planning proficiency
11. What does Treasury Management encompass?
a) Solely cash management c) Managing only short-term obligations
b) Managing cash flows, investments, and risk exposures d) Focusing on investment strategies only
12. What is the primary purpose of treasury management in terms of risk management?
a) To maximize risks c) To identify, assess, and mitigate various types of financial risks
b) To ignore risks d) To encourage risks for higher returns
13. Which of the following is NOT a part of the scope of treasury management?
a) Cash management c) Investment management
b) Marketing strategies d) Risk management
14. Which function of treasury management involves managing the day-to-day operations of the treasury function?
a) Cash concentration c) Treasury operations
b) Investment management d) Strategic planning
15. What does the treasury department do in terms of bank relations?
a) Ignoring bank conditions c) Not communicating with banks
b) Keeping the company's bankers informed of the company's financial condition and projections
d) Using various hedging and netting strategies
16. What activity involves compiling information from around the company to create an ongoing cash forecast?
a) Cash concentration c) Cash forecasting
b) Working capital monitoring d) Credit rating agency relations
17. What is the primary goal of investments in treasury management?
a) Maximizing risks c) Maximizing returns while minimizing risks
b) Minimizing returns d) Not engaging in any investment activities
18. What is NOT a type of risk that treasury management is concerned with?
a) Market risk c) Currency risk
b) Operational risk d) Political risk
19. What function involves determining when additional cash is needed and raising funds through various means?
a) Cash concentration c) Fund raising
b) Investments d) Credit rating agency relations

20. What is one of the responsibilities of treasury management concerning IT systems?

a) Ignoring IT systems c) Providing information about cash holdings, projections, and market conditions
b) Not maintaining treasury workstations d) Focusing solely on manual processes and ignoring technology advancements
21. What is the primary task of liquidity management in a company's treasury department?
a) Maximizing investment returns c) Ensuring the company's liquidity at all times
b) Minimizing transparency of cash flows d) Increasing turnover without considering liquidity
22. What are some characteristics of sound liquidity management?
a) Lack of transparency in cash flows c) Constant overview of cash flows and accurate liquidity planning
b) Neglecting receivables and liabilities d) Irregular updating of liquidity plans
23. What does liquidity management involve?
a) Ignoring the company's bills c) Ensuring there is enough money available for bills and investments
b) Making investments without cash reserves d) Focusing solely on increasing turnover
24. What is one of the main functions of liquidity management?
a) Ignoring strategic goals of the company c) Balancing the need for liquidity with the goal of increasing turnover
b) Maximizing investment risk d) Minimizing transparency in liquidity planning
25. Why is it important for the treasurer to balance liquidity needs with strategic goals when planning liquidity?
a) To neglect strategic goals in favor of liquidity c) To increase transparency in cash flows
b) To ensure investment returns are maximized d) To develop a strategy that meets both liquidity needs and strategic goals
26. Which of the following is NOT a characteristic of sound liquidity management?
a) Transparency in cash flows c) Accurate liquidity planning
b) Neglecting to update liquidity plans regularly d) Constant overview of receivables and liabilities
27. What is the main objective of liquidity management?
a) Maximizing investment risk c) Ensuring the company's liquidity at all times
b) Ignoring strategic goals d) Minimizing transparency in cash flows
28. What is the primary purpose of cash flow monitoring in liquidity management?
a) Reviewing past budgets c) Forecasting cash flow for a given time
b) Analyzing cash flow patterns d) Analyzing budget adjustments
29. Which of the following is NOT a step in the cash flow monitoring process?
a) Automate reconciliation of bank statements c) Utilize visual representations like dashboards
b) Conduct regular assessments of monthly cash positions d) Prepare daily cash reports for stakeholders
30. Why is cash flow monitoring important?
a) To identify improvement areas and make informed decisions c) To incorporate trends and scenarios into forecasts
b) To generate forecasting reports d) To prepare financial statements
31. What is the primary objective of cash flow planning in liquidity management?
a) Analyzing past budgets c) Managing liquidity risks
b) Forecasting cash flow for a given time d) Reviewing actuals and making adjustments
32. What is NOT a step in the cash flow planning process?
a) Incorporating trends, seasonality, and scenarios into forecasts c) Comparing forecasts with actuals to make adjustments
b) Generating forecasting reports d) Analyzing past budgets to determine expense and revenue expectations
33. Why is cash flow planning important for managing liquidity risks?
a) To improve credit rating and increase profitability c) To prepare financial statements and review the final budget
b) To build a sound cash flow plan and analyze available credit d) To conduct regular assessments of daily cash positions
34. Which technique involves gathering bank data from various sources?
a) Cash flow monitoring c) Budgeting
b) Cash flow planning d) Forecasting
35. What is the importance of cash flow monitoring in terms of decision-making?
a) To analyze cash flow patterns c) To generate credible, error-free reports for leadership
b) To incorporate trends and scenarios into forecasts d) To analyze past budgets and prepare financial statements

III. TRUE or FALSE. Write TRUE if the statement is correct, FALSE if the statement is incorrect.
F 1. Continuous monitoring of cash flow is not essential for reliable liquidity management.
T 2. Real-time visibility of current cash flow is considered optimal for effective liquidity management.
F 3. Cash flow planning involves only estimating future expenses, not considering past cash flow data.
T 4. Recurring disbursements are easily included in cash flow planning.
F 5. It is unnecessary to reflect business development realistically when creating a cash flow plan.
F 6. Liaising with sales and other departments is not important for creating realistic revenue estimates in cash flow planning.
T 7. Excellent liquidity management involves effectively managing cash inflow and outflow to gain transparency and visibility.
T 8. Employing cash flow tracking solutions can help companies automatically track their cash flow.
T 9. Accurate data from cash flow tracking solutions can help companies anticipate future obligations.
F 10. Liquidity plans are unnecessary for companies if they have accurate cash flow tracking solutions in place.