CTP Ch.1 Intro to Treasury Mgmt Flashcards
1
Q
Major Objectives of Treasury Mgmt
A
Maintain Liquidity Optimize Cash Resources Access to ST Financing Manage Investments Access LT Financing Manage Financial Risk Coordinate Financial Functions Manage External Vendors
2
Q
Cash Conversion Cycle
A
Borrow>Purchase Inventory >Build Inventory >Provide services and Products > Collect Revenues >Pay down borrowings
3
Q
Roles of the Treasurer
A
Manage overall financial risk Arrange Financing, ST and LT Manage relationships with banks Oversee day to day liquidity and cash management Investing Develop treasury policies and procedures Manage domestic and int'l payments
4
Q
Corporate Governance
A
the principles and processes by which any organization is governed. Guidelines for managing a company.
5
Q
Role of the BOD
A
Open, close and modify bank accounts Establish Credit Facilities Oversee investments Issue Debt and equity securities Devise, Implement and execute risk management strategies
6
Q
6 tasks involved in daily cash management
A
Preparing cash position worksheet
Monitoring cash balances
Collecting, concentrating and disbursing cash
Investing and borrowing funds
Researching and reconciling exception items
Coordinating efforts with other financial departments(tax, AP, AR)
