Question

Which is most commonly associated with the treasury function?

A) Accounts Payable
B) Cash Management
C) Inventory Control
D) Payroll Processing

Answer 1

The treasury function is primarily associated with Cash Management, which includes handling the company's liquidity and cash flow.

Step-by-step explanation:

The treasury function in a company is most commonly associated with Cash Management. This area of finance deals with the collection, handling, and usage of cash, ensuring that the company maintains adequate liquidity to meet its short-term obligations and operating needs. Tasks under cash management might include managing bank relationships, forecasting cash flow, and investing excess cash.

Although Accounts Payable, Inventory Control, and Payroll Processing may also involve cash transactions, they are not primarily under the treasury function. Accounts Payable is related to the payments to suppliers, Inventory Control deals with maintaining optimum levels of stock, and Payroll Processing involves managing employee compensation. These functions usually report to the treasury but do not define its core responsibilities.