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CIMA > E1 Fin In Digital World > Flashcards

E1 Fin In Digital World Flashcards

1
Q

What are the three general ways that the finance function creates and preserves value

A

Enables, shapes, narrates

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2
Q

What are the five primary roles of the finance function

A 
Planning 
forecasting 
resource allocation 
performance management and control 
financial/corporate reporting
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3
Q

Which of the five primary roles fall under ENABLES

A

Planning - which includes budgeting

forecasting

resource allocation - which includes people materials machinery money

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4
Q

Which of the five primary finance roles falls under SHAPES HOW

A

Performance management and control note that this is viewed as one thing

This includes KPIs & variance analysis

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5
Q

Which of the five primary finance roles falls under NARRATES HOW

A

Financial/corporate reporting

this is producing the accounts for purposes of shareholders and other interested parties

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6
Q

What are the four levels of the diamond shape of the finance organisation

A

4 smart finance factories
3 three digital centres of excellence
2 business partnering
1 senior financial leadership

Four is at the base of the diamond one is at the top

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7
Q

Which area of finance handles tax

A

Tax is handled by the Treasury function

Treasury is part of Level 4 & this would be accounting for tax.

Tax Planning is handled by Specialists in Level 3

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8
Q

What are the key roles of the Treasury function

A 
Working capital management
 cash management 
financing 
foreign currency 
tax
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9
Q

What are the key things that management accounting brings

A

Providing information to help managers and other internal users in:
decision-making
performance measurement
planning and control activities

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10
Q

What are 3 of the key tools used by management accounting

A

Cost schedules/standard cost cards budgets

Variance Reports

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11
Q

In terms of why information is produced what is the key difference between management accounting and financial reporting

A

Management accounting is for internal use financial reporting is for external use such as shareholders creditors banks and government

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12
Q

What are the legal requirements for financial reporting vs management accounting

A

Management accounting has no legal requirement

financial reporting is required for limited companies

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13
Q

What are the required formats for management accounting versus financial reporting

A

Management accounting has no required format - just determined by what the business needs

financial reporting has required formats

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14
Q

What are the characteristics of useful data in management reports

A 
Accurate 
Complete
Cost less than benefits 
Understandable 
Relevant
Adaptable 
Timely
Easy to Use
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15
Q

What are the attributes of Good Data

A 
Accurate 
Timely
Relevant 
Concise
Cost effective
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16
Q

What are the known limitations of using external data

A

External data may not be accurate

external data may be out of date

the company publishing the data may not be reputable

external data may not meet the exact needs of the business

it may be difficult to gather external data

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17
Q

What does ETL stand for in terms of data

A

Extraction
transformation
loading

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18
Q

What is data profiling

A

Before extracting the data, it needs to be analysed to understand
content
format
and structure

this is data profiling

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19
Q

What is data extraction

A

Harvesting data from source databases and locations

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20
Q

What is transformation in the ETL process

A

Transforming the source data into the format used for the destination database

this is done using codes and rules

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21
Q

What is loading in the ETL process

A

This is the process of the newly cleaned and prepared data being uploaded to the destination database ready for use

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22
Q

What is Hadoop

A

A company / software provider that allows processing of big data

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23
Q

What is data modelling

A

Data modelling is a systemic way of looking at all an organisations data requirements in a way that can be converted into code.

Identifies a clear way the data should be organised so it can be retrieved interrogated linked and grouped

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24
Q

What are the three levels of data modelling process

A

Conceptual

logical

physical

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25
Q

What is the conceptual level of data modelling

A

Practical of you considering the business data and the required information

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26
Q

What is the logical level of data modelling

A

Logical level begins to develop a technical map of rules and data structures

it defines how data will be held and used

27
Q

What is the physical level of data modelling

A

This considers how the system requirements will be implemented using a specific DBMS (database management system)

28
Q

What is DBMS

A

Database management system

this is in used in the Physical level of data modelling

29
Q

What are the 7 Ps of marketing mix

A 
Product
 place 
promotion 
price 
people 
processes 
physical evidence
30
Q

Which of the 7 Ps of marketing mix relate to service industries

A

People

processes

physical evidence

31
Q

What does place mean in the 7 Ps of marketing

A

Distribution channels
intermediaries
transportation and storage

32
Q

What does processes refer to in the 7 Ps of marketing mix

A

The systems through which the service is delivered

examples are teaching methods at the school or the type and approach of service in a restaurant

33
Q

What does SMART objectives or KPIs mean

A 
Specific
 measurable 
achievable 
relevant 
time bound
34
Q

What are the elements of the IT infrastructure

A 
Core networks
 databases
 software
 hardware 
and procedures

managed by the IT function

35
Q

In terms of types of technology what is the difference between Core Modernisation Tools and Exponentials

A

Core Modernisation tools are considered mainstream

Exponentials are at an early adopter stage

36
Q

What are two examples of core modernisation tools

A

Cloud technology

data visualisation

37
Q

What are two examples of types of technology called Exponentials

A

Block chain

advanced analytics

38
Q

What are the key benefits of data visualisation

A

Accessible

real-time

performance optimisation

insight and understanding

39
Q

What are the accounting rules for Cryptocurrency

A

This is a great area and is currently undergoing debate

Some say Cryptocurrency should be considered cash or intangible assets or even inventory but nothing has been decided

40
Q

What is meant by having a Digital Mindset

A

Taking the overall strategic view of the long-term impact of all the changes in data and data technology

41
Q

What are the five qualities that Forbes identified as being important for the Digital Mindset

A

Provide vision at empower others

give up control yet architect the choices

sustain yet disrupt

rely on data yet trust your intuition

be sceptical get open-minded

42
Q

What are the five key building blocks of data strategy

A

Identify

store

provision

process

govern

43
Q

Briefly describe the 5 key building blocks of data strategy

A

Identify - what does a business have an require this is similar to date a profiling

store - what structure and storage approach will protect and make the data easy to use

provision - data should be package to allow easy use to the organisation. rules and guidelines and access levels are in this section

process - current data should be designed for easy and consistent processing

govern - clear consistent policy is on use and storage. minimising risk of breach/hack

44
Q

What are the primary tasks of smart finance factories ( level four)

A

Overall- basic day to day accounting

Financial reporting

Treasury management

internal audit

Management accounting

45
Q

What are the primary tasks of digital centres of excellence (level three)

A

Specialists who provide further insight on info handed over from level 4

financial planning and analysis (fp&a)

project management

Project appraisal

Taxation

46
Q

What are normal roles of FP&A

A

Getting the organisations overall health using key financial ratios

looking at effectiveness of organisations current investments and comparing to other ways that might use its cash

Prepare budgets across departments to consolidate into an overall budget

Identify which products/product lines are the most profitable

47
Q

What are the four Vs of operations

A

Volume

variety (of inputs & outputs)

variation (in demand)

visibility (to customers)

48
Q

What are the four Vs of big data

A

Velocity

veracity

volume

variety

(Put “of the data” at the end of these for meaning)

49
Q

What are the five steps in the product/service development

A

Consider customers needs

concept screening

design process

time to market

product testing

50
Q

What are the three categories of stakeholders

A

Connected

internal

external

51
Q

What are internal stakeholders and give two examples

A

Internal stakeholders are intimately connected to the organisation

examples include

employees

managers and directors

52
Q

What are connected stakeholders and give for examples of connected stakeholders

A

Connected stakeholders invest in or have dealings with the company

examples include

shareholders

customers

suppliers

finance providers

53
Q

What are external Stakeholders and give for examples of external stakeholders

A

External stakeholders don’t have a direct link with the company but can influence or be influenced by its activity

examples include

the community

environmental groups

government

trade unions

54
Q

What is structured data versus unstructured data

A

Structured data is deliberately produced and collected for a specific purpose

unstructured data is captured passively without a clear purpose. examples include social media and likes

55
Q

Briefly explain principal sources of data or give a couple of examples of each

A

Human sourced - social media text messages emails

machine generated data - smart technology Internet of things sensors home assistance

processed data - traditional data data bases customers transactions

open data - publicly available data such as information from government’s national statistics

56
Q

What is Porters value chain

A

This is focused on activities instead of functions and looks at where value is added

57
Q

In Porters value chain describe primary and secondary activities

A

Primary activities are once the customer interacts with and sees the value being created

secondary are support activities Required to deliver the primary activity

58
Q

What are four main characteristics of services

A

Intangibility

inseparability

perishability

variability

59
Q

What is the difference between a critical success factor (CSF) and a KPI

A

Critical success factors are the vital areas where things must go right for the business to meet some strategic objectives

KPIs are the measures which indicate whether or not the CSFs are being achieved

60
Q

What are the five CIMA code of ethics Principles. Give a short definition

A

Integrity - straightforward honest and truthful

objectivity - no bias

professional competence and due care - CPD & diligence

confidentiality

professional behaviour - laws and regulations conduct unbecoming

61
Q

What are the primary roles of Level 2 in the diamond shape

A

Business partnering

communicating insight to influence users

62
Q

What are the primary rules of level one of the diamond structure

A

Key initiatives that support the organisations goals

executing and funding strategies set by the CEO

liaise effectively with internal and external stakeholders

63
Q

What are the useful reasons for budgets

A

Crumpet

Coordination

responsibility

utilisation

motivation

planning

evaluation

telling (coms)

CIMA (1 decks)

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