2. The Activities Performed by Finance Professionals to Fulfil the Roles

Question 1

Draw the information to impact framework

Answer 1

See page 30

Question 2

What is meant by “assembling information”?

Answer 2

Collating data to prepare information about the organisation

Question 3

What is data?

Answer 3

Facts or figures in a raw, unprocessed form

Question 4

What is information?

Answer 4

Information is data that has been processed in such a way that is has meaning

Question 5

Which part of the information to impact framework is part of REPORTING?

Answer 5

Assembling information

Question 6

What is meant by “analysing for insights”?

Answer 6

Using financial and non-financial information to draw out patterns or relevant insights

Question 7

Which part of the information to impact framework is part of QUESTIONING?

Answer 7

Analysing for insights

Question 8

What is meant by “advising to influence”?

Answer 8

Communicating insights to influence users

Question 9

Which part of the information to impact framework is part of DEVELOPING SOLUTIONS?

Answer 9

Advising to influence

Question 10

What is meant by “applying for impact / execute”?

Answer 10

Support the implementation of decisions to achieve the desired impact

Question 11

Which part of the information to impact framework is part of DEPLOYING SOLUTIONS?

Answer 11

Applying for impact / execute

Question 12

What is meant by “acumen”?

Answer 12

The ability to use practical skills and a depth of perception or discernment to make good judgements and accurate, quick and effective decisions

Question 13

What are the potential limitations of external data sources?

Answer 13

May not be accurate
May be out of data
The provider may not be reputable
May not meet exact needs of the business
May be difficult to gather

Question 14

List the qualities of good information

Answer 14

A C C U R A T E
A ccurate
C omplete
C ost Benefit
U nderstandable
R elevant
A daptable
T imely
E easy to use

Question 15

What is quantitative information?

Answer 15

Information that can normally be expressed in numerical terms

Question 16

What are the common mistakes made when analysing quantitative information?

Answer 16

Inappropriate presentation
Use of unsuitable comparator
Poor quality data collection

Question 17

What is qualitative information?

Answer 17

Information that cannot normally be expressed in numerical terms

Question 18

The finance function provides information and insight to other functions ________ them to create and preserve value

Answer 18

enabling

Question 19

The finance function works with other functions to _________ the function creates and preserves value

Answer 19

shape how

Question 20

The finance function works with other functions to achieve the desired organisational impact, __________ the finance function creates and preserves value

Answer 20

narrating how