The Finance Function and Financial Information

Question 1

What are the four main functions of a the finance function

Answer 1

Recording financial transactions
Financial reporting (external)
Management accounting (internal)
Treasury management (internal)

Question 2

What does CATIVA stand for

Answer 2

Completeness
Accurate
Timeliness
Inalterability
Verifiability
Assessability

Question 3

What does ACIANA stand for

Answer 3

Availability
Confidentiality
Integrity
Authenticity
Non-repudiation
Authorisation

Question 4

What are the three most common measures of performance

Answer 4

Profitability
Activity
Productivity (3Es)
-Economy
-Effectiveness
-Efficiency

Question 5

What are some limitations of financial performance indicators

Answer 5

Mostly reports internal performance
Encourages short term decision making
Easily manipulated

Question 6

What are the four elements of a financial scorecard

Answer 6

Financial perspective
Customer perspective
Innovation and learning perspective
Internal business perspective