5.1 The role of the finance function

• What is the primary responsibility of the finance function in a business?

  Managing financial resources
• What does financial planning and control involve?

  Budgeting and forecasting
• Match the responsibility with its description:

  Financial Accounting ↔️ Preparing financial reports

  Investment Appraisal ↔️ Evaluating potential projects

  Working Capital Management ↔️ Managing inventory and cash
• What is the primary goal of financial planning and control?

  Monitoring financial performance
• What does financing enable a business to fund?

  Growth and investment
• Financial planning and analysis are essential for strategic decision-making in a business.


  True
• The finance function ensures the business operates efficiently and achieves its financial objectives
• The finance function covers areas such as financial planning, accounting, investment appraisal, and working capital management
• The finance function provides the information needed to support strategic decision-making
• The finance function is responsible for managing the company's financial resources
• What is working capital management concerned with?

  Managing cash flow
• How does financing support business growth?

  By securing funding
• Preparing financial statements is a key responsibility of financial accounting.


  True
• Why is accurate financial planning and analysis important for a business?

  To achieve financial objectives
• Working capital management ensures the business has sufficient liquidity to meet obligations.


  True
• Financial planning and analysis involves budgeting, forecasting, and monitoring financial performance
• Financing enables a business to access the capital needed for growth and investment
• Match the finance function responsibility with its description:

  Financial accounting ↔️ Preparing financial statements and reports

  Investment appraisal ↔️ Evaluating potential investments
• What does financial planning and control involve in the finance function?

  Budgeting, forecasting, monitoring
• Why is financial planning and analysis crucial for a business?

  Supports strategic decision-making
• What is the primary goal of financing in financial management?

  Fund growth and investment
• What is one benefit of effective financial control and monitoring?

  Improved resource management
• Investment appraisal helps assess the financial viability of potential projects.

  True
• The finance function equips organizations with the resources to make informed, strategic decisions.

  True
• The financing responsibility involves securing funding through loans, equity, or other sources
• Working capital management focuses on managing cash flow, inventory, and accounts receivable
• Financial planning and analysis provides financial information to inform strategic planning
• The finance function equips organizations with resources to achieve their objectives.


  True
• Regulatory compliance ensures adherence to financial regulations and standards
• Steps in the role of financial management in decision-making

  1️⃣ Financial Planning and Analysis

  2️⃣ Investment Appraisal

  3️⃣ Working Capital Management

  4️⃣ Financing
• What is the primary role of financial management in a business?

  Strategic decision-making support
• What does working capital management ensure for a business?

  Sufficient liquidity
• What is one of the main responsibilities of the finance function?

  Financial planning and control
• The finance function ensures efficiency and supports strategic decision-making.

  True
• The finance function provides financial information to support strategic decision-making.


  True
• Investment appraisal helps assess the viability and expected returns of new initiatives.


  True
• Arrange the key processes involved in financial control:

  1️⃣ Budgeting

  2️⃣ Variance analysis

  3️⃣ Auditing