Asked by Aaron Portillo on Jul 02, 2024
Verified
Which of the following statements is correct?
A) A financial controller is only responsible for financial accounting.
B) The primary role of the finance function of an organisation is to liaise with banks and financial intuitions to obtain finance to fund operations.
C) In some organisations, management accountants are located in factories.
D) Management accountants are responsible for external reporting as well as providing information to internal managers.
Financial Controller
A senior executive responsible for managing a company's financial accounting, reporting, and compliance activities.
Finance Function
Refers to the tasks related to managing a company's financial resources, including budgeting, forecasting, investing, and securing funds.
Management Accountants
Professionals who focus on providing financial data and analysis to managers within organizations to facilitate decision-making.
- Differentiate between financial accounting and management accounting.
Verified Answer
TK
Taylor Knight5 days ago
Final Answer :
C
Explanation :
Option A is incorrect because a financial controller is responsible for managing financial operations and assets, including accounting, financial reporting, budgeting, and forecasting.
Option B is incorrect because the primary role of the finance function is to manage financial resources, optimize financial performance, and support decision-making processes throughout the organization, which involves more than just obtaining finance.
Option C is correct because management accountants may be located in various departments, including factories, to provide financial expertise and support to operational managers.
Option D is incorrect because external reporting is typically handled by financial accountants, while management accountants focus on providing financial and non-financial information to internal managers to support performance management and decision-making processes.
Option B is incorrect because the primary role of the finance function is to manage financial resources, optimize financial performance, and support decision-making processes throughout the organization, which involves more than just obtaining finance.
Option C is correct because management accountants may be located in various departments, including factories, to provide financial expertise and support to operational managers.
Option D is incorrect because external reporting is typically handled by financial accountants, while management accountants focus on providing financial and non-financial information to internal managers to support performance management and decision-making processes.
Learning Objectives
- Differentiate between financial accounting and management accounting.