Global MCQ Practice

🌐 Total MCQ
🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books

Treasury Management Quiz 2 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. What are the controls that should be implemented for proper treasury management?
2. Shares which enjoy preference over payment of dividends are called .....
3. The higher the DPO is, the longer the period allowed to make the payment and hence the greater the use of cash. Some companies take an improving DPO project to be licensed to delay payments to suppliers. This is not a good practice. The AP for a company is the accounts receivable (AR) for its supplier. If the payment needs to be delayed, the terms have to be agreed on up front at the time of negotiation.
4. It is the periodic net settlement of specific outstanding payments between different entities or units. This is different from gross settlement, whereby each payment is made individually.
5. This is a company's designated long-term partner, with whom the company does the bulk of its business.
6. The financial market may have or not have the physical location and the exchange of the financial instruments and the financial securities may be exchanged between the parties over the phone or the internet as well.
7. Reconciliation is important in cash transfer controls to identify discrepancies and errors.
8. In addition to segregation controls and internal auditing, the treasurer should impose unlimited controls on a variety of transactions
9. Statement 1:Poor management of liquidity could result in a spike in interest expense to raise money in crisis situations, which impacts the company's profitability rather severely.; Statement 2:Stability of assets and liabilities, especially across debt and capital investments, is a good indicator of a firm 's control over its financial management.
10. Statement 1:Reporting is also an independent activity, and firms are moving towards automating it to reduce manual intervention and thus become timelier and more accurate.; Statement 2:Overreporting is also a danger, and hence the treasury policy must stipulate the formats, recipients, and frequency of regular reporting.
11. It is possible to outsource many Treasury tasks and functions, and many service providers provide reliable, flexible, and highly regulated levels of service across various levels.
12. It sends funds to the recipient's bank account more rapidly than any other form of payment, and is the standard form of international payment.
13. How much net open position in foreign currency is allowed by Bank Indonesia for banking?
14. Is made on a paper document, which has traditionally been physically routed from the payer to the payee, to the payee's bank, and then back to the payer's bank
15. Statement 1:Internal processes and their location is a strong determinant of risk and its measure. Operational risk and control are core element of the treasurer's responsibility, and the robustness of internal processes becomes a critical part of the firm's success ..... ; Statement 2:The ability not to bargain with customers and suppliers and to negotiate terms favorable to the firm is an important source or mitigation of risk.
16. Efficient forecasting of cash flows remains one of the determinants of a company's well-oiled financial machinery since the accuracy and timeliness of the forecasting process do not determine visibility and hence the ability to better manage the company's cash flows, borrowings, investments, and balance sheet.
17. An eligible entity, will in normal circumstances, be allowed to open and maintain only ..... SGL account.
18. Coordinating the process of consolidating and netting payments for increased efficiency
19. It is the uncertainty associated with the nonpayment of monies owed to a party by another party, for reasons of intent or financial or regulatory inability
20. The combination of the floats associated with these inbound and out-bound check payments is the
🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books