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PC CBT > Finance > Flashcards

Finance Flashcards

1
Q

Budgeting Process Includes

A

Budget planning, preparation, approval, monitoring, reporting, and revision. (6)

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2
Q

Annual Budget Period

A

January 1st to December 31st.

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3
Q

Budget Process Timeline

A

Begins in August of the preceding year and ends in November.

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4
Q

Budget is approved by

A

PC Limited’s Board of Directors.

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5
Q

Duration to pay suppliers

A

within 45 days.

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6
Q

Processes invoices for vendor payments

A

Accounts Payable Unit (APU)

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7
Q

Invoice Certification is done by

A

user department and procurement department representatives.

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8
Q

APU Reports

A

Provides monthly and weekly reports.

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9
Q

How is credit granted to Long-Term and Spot Customers

A

Credit granted based on credit analysis and limits.

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10
Q

Credit Terms

A

Stated in the Credit Contract.

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11
Q

How often are credit limits Reviewed

A

Credit limits reviewed annually.

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12
Q

Debt Collection is done by

A

Approved Debt Collection Agency.

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13
Q

Fixed Asset Disposal Approved by

A

Endorsed by CFO and approved by CEO.

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14
Q

For Preservation of inventory items

A

First-In-First-Out/First-Expiry-First-Out

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15
Q

Intercompany Loans must comply with

A

arms-length transfer pricing principle.

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16
Q

Intercompany Loans is Approved by

A

Managing Director and CFO.

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17
Q

Proposed final dividends from distributable profits should not exceed

A

80%

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18
Q

Dividends declaration for Wholly Owned Subsidiaries must be

A

endorsed by Head of Finance & Accounts, approved by Managing Director.

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19
Q

Cash must be reserved to

A

Meet capital and operational expenditure for the next 30 days.

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20
Q

Investment Portfolio should be in

A

money market funds (Nigerian Naira) with AAAm, AAAmmf, or Aaa-mf credit rating.

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21
Q

Corporarte income Tax Rates

A

Large companies (30%), medium-sized (20%), small companies (exempted).

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22
Q

CGT Returns are Due by

A

June 30 and December 31.

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23
Q

The Transfer Pricing Regulations apply to various transactions including

A

the sale and purchase of goods and services, financial transactions, and manufacturing arrangements

24
Q

In transfer pricing, PC must

A

Declare relationships with connected persons, file TP declaration or face N10M fine

25
Q

PC’s revenue streams are mainly classified into

A
  • Core revenue,
  • Finance income,
  • Miscellaneous income
26
Q

PC core revenues include

A

sales of crude oil and gas, refined products and rendering of technical services

27
Q

PC finance income includes

A

Fixed income investments, dividend income and rental income

28
Q

PC miscellaneous income includes

(4)

A
  • Disposal of asset,
  • Registration fees,
  • Bulk Purchase Agreement (BPA) and
  • other third-party fees.
29
Q

The budget cycle for a financial year shall be implemented in line with

A

PC Limited’s approved budget timetable.

30
Q

Approvals for Budget Commitments shall be made in line with

A

the PC Delegation of Authority DOA/DFA Guidelines.

31
Q

PC Limited and its subsidiaries budget shall be prepared on

A

an annual basis and derived from the three to five-year strategic business plan of the Company.

32
Q

The annual budget shall be divided into three sections

A
  • revenue budget,
  • capital expenditure (CAPEX) budget, and
  • operating expenditure (OPEX) budget.
33
Q

CAPEX shall consist of

A
  • acquisition of movable and non-movable fixed assets, and
  • execution of capital projects
34
Q

OPEX primarily consists of

A

all ( both direct and indirect expenditures (salaries, benefits, and overheads) operational expenses for the day to day running of the business

35
Q

Imprest management is

A

Process of managing and controlling funds reserved for unplanned business expenses.

36
Q

How imprest is kept

A

Usually kept as
- cash or
- assigned operational debit cards (P-cards).

37
Q

Custodian Responsibility for imprest

A

Safeguarding and accounting for funds during operation.

38
Q

P-card Usage

A

Assigned to specific departments/divisions for payments like
- subscriptions,
- online training, and
- foreign services.

39
Q

Imprest Funding is made by

A

Treasury Department provides monthly funding (up to N 300,000).

40
Q

How imprest is Audited

A

Subject to periodic audit by the GRC function.

41
Q

Imprest Funds should not be used for

A
  • loans,
  • personal commitments,
  • travel allowances, or
  • non-office-related expenses.
42
Q

Property plant and Equipment management

A

Process of
- acquiring,
- recording,
- capitalizing,
- transferring, and
- disposing
of assets owned by PC and its subsidiaries.

43
Q

PP&E Management is carried out to (4)

A

Ensure adequate procedures for managing PC Limited’s PP&E, including
- tagging,
- verifying,
- consistent depreciation rates, and
- recognizing impairment.

44
Q

Sub-Processes of PP&E management

(6)

A
  • Asset Acquisition and capitalisation,
  • Safeguard and Control,
  • Depreciation,
  • Impairment,
  • Transfer,
  • Disposal
45
Q

PP&E management should Strictly adhere to

A

Supply Chain Management Policy and Procedural Guide.

46
Q

Inventory management is

A

Process of managing and tracking inventory items within PC Limited and its subsidiaries.

47
Q

Objectives of inventory management

A
  • Proper handling of received materials to eliminate wastage and ensure safety.
  • Storage, preservation, and systematic distribution of inventory items;
  • Up-to-date documentation for enhanced accountability.
48
Q

Sub-Sessions Covered in inventory management (6)

A
  • Inventory requisition,
  • receipt,
  • issuance,
  • monitoring and replenishment,
  • measurement and reconciliation,
  • disposal
49
Q

What items in inventory are issued first?

A

Items with close expiry dates

50
Q

Approval of inventory items transfer/disposal requests

A

CFO of PC Limited or MD of respective subsidiaries

51
Q

Project accounting is

A

Processes involved in
* initiating,
* recording, and
* reporting
project transactions from commencement to closure.

52
Q

Project accounting objectives

Project controls

A

Adequately track and account for project costs on a project-by-project and asset class basis.

53
Q

Project accounting controls (4)

A
  • Implement controls over project expenditure;
  • Provide timely and accurate financial status reporting;
  • Detect potential budget overruns;
  • Forecast estimates to completion.
54
Q

Project accounting Sub-Processes

A
  • Project Approval and Account Set-Up;
  • Project Budget Monitoring and Reporting;
  • Project Completion and Certification.
55
Q

Budget Monitoring

A
  • track actual expenditure and estimated cost to completion;
  • Project Accountant prepares a financial performance report; Report includes budgeted cost, actual cost, estimated cost, and variance analysis.
56
Q

Approving Authorities for tendered items

A

BOD
Tenders committee levels 1,2,3,4
GCEO

57
Q

Approving Authorities for non-tendered items

A

BOD
GCEO
GED
GGM
GM

PC CBT (9 decks)

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