Technology in Finance

Question 1

What are the 6 types of technology used in the finance department?

Answer 1

Spreadsheets
Databases
Word Processing
E-mail
Online Banking
EPOS (electronic point of sale)

Question 2

Describe spreadsheets

Answer 2

Spreadsheets can be used to prepare financial documents such as income statements and cash budgets.

Question 3

Advantages of using spreadsheets

Answer 3

Formulae can be used to ensure calculations are performed accurately.

Graphs can be generated so information can be interpreted more easily (e.g. break even charts).

If statements can be used to predict profit/loss in different scenarios.

Question 4

Describe databases

Answer 4

Databases can be used to store customer banking information for invoicing.

Question 5

Describe word processing

Answer 5

Word processing can be used to type up an invoice to send to customers.

Word processing can be used to prepare financial reports for showing Board of Directors.

Question 6

Describe e-mail

Answer 6

E-mail can be used to contact suppliers to negotiate a better deal for cost of raw materials.

Question 7

Describe online banking

Answer 7

Online banking can be used to send electronic payments to suppliers.

Question 8

Describe EPOS

Answer 8

Electronic point of sale can be used to automatically update financial records as products are scanned at the checkout (e.g. sales totals, break-even point)