Unit 5.1 The role of the finance function

Question 1

What forms can financial information take?

Answer 1

1) costs and revenues of business, for use in cash-flow forecast
2) Information on the profit or loss of a business
3) Data on the average rate of return and profitability

Question 2

What is the role of the finance department?

Answer 2

1) Identifying and acquiring sources of finance
2) Setting and monitoring budgets in each department
3) Reporting on profitability
4) Providing financial information to management

Question 3

What does the financial information include details of?

Answer 3

1) profit margin and loss
2) cash flow
3) break-even
4) profit margin and average rate of return