Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
2Activity
0 of .
Results for:
No results containing your search query
P. 1
Post-test Cashflow Engineering

Post-test Cashflow Engineering

Ratings: (0)|Views: 57|Likes:
Published by analysis
A test on cash flow engineering for the suvival of an organization instead the downsizing option.
A test on cash flow engineering for the suvival of an organization instead the downsizing option.

More info:

Published by: analysis on Dec 21, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

10/28/2011

pdf

text

original

 
Post-test
A Practical Approach for Cashflow Reengineering
Course Code 96007
1.
One factor that triggered the current reengineering emphasis was:
(a)
The cost of information processing
(b) International excess production capacity
(c)
The increasing role of management
(d)
The growing importance of organized labor
2.
Cashflow reengineering is successful because it accomplishes savings without:
(a)
Extensive staff downsizing
(b)
Emphasizing float improvements
(c)
Changes to the organization's value system or philosophy of management
(d)
Outsourcing noncore competencies
3.
Companies that experience changes in authority and power roles during periods of 
restructuring may also experience:
(a)
A realignment of line and staff 
(b)
Overt acts of violence
(c)
Distrust of counsel and advice
(d)
Minimal resistance
4.
Managers may not fully consider the impact of their actions on organizational Cashflow
because:
(a)
They may focus on the requirements of their jobs rather than on organizational needs.
(b)
Their MBO's may focus on the qualitative aspects of management.
(c)
They may assume that cash is the concern of the accountants.
(d)
They realize that cash is affected by business decisions made outside of treasury.
185
 
5.
Cashflow reengineering avoids the mistake of microanalysis by focusing internal improve-
ment efforts or outsourcing on an entire segment of the cashflow timeline, including:
(a)
Collections, disbursements, and information systems
(b)
Disbursements, information systems, and concentration(c) Information systems, concentration, and collections
(d)
Concentration, collections, and disbursements
6.
Cash processing technology in current use includes which of the following?
(a)
OCR, MICR, and ACH
(b)
ECR, IRR, and ACC
(c)
MICR, EFT, and NPV
(d)
ACH, ABC, and ABM
7.
Collection float measures which portions of the timeline?
(a)
Clearing and concentration times
(b)
Availability and clearing times
(c)
Mail and availability times
(d)
Ledger credit and availability times
8.
 
The cost elements in the financing of the balance sheet are:
(a)
Dividends and debt interest
(b)
Dividends, debt interest, and expected stock price growth
(c)
Debt interest and expected stock price growth
(d)
Dividends and expected stock price growth
9.
Assuming that the lowest explicit (stated) after-tax cost of capital is debt, the overuse of financial leverage as compared to the industry standard causes:
(a)
The optimal balance sheet structure(b) The highest cash cost for financing
(c)
An average cost of capital lower than the industry's average
(d)
An average cost of capital higher than the industry's average
10.
Which of the following are techniques for determining the profitability of a long-term
business investment?
(a)
IRR and NPV
(b) NPV and ECR
(c)
ECR and MCC
(d)
MCC and ACC
11. Issues to consider in deciding between lockboxing and in-house collections include:
(a)
Processing float delays as funds are moved from deposit accounts to the concentra-tion bank 
(b)
Control issues involving the possibility of the theft of fiends by employees
(c)
Advantages from improved invoice design and timing
(d)
Mail float issues involving access to balance reporter information
186 A Practical Approach for Cashflow Reengineering 
 
12.
New product developments affecting the traditional purchase-order-payables cycle
include:
(a)
Direct deposit and legacy mainframe systems
(b)
Legacy mainframe systems and partial reconciliation
(c)
Procurement cards and direct deposit
(d)
Comprehensive payables and procurement cards
13.
The balance reporter provides:
(a)
Daily information on account activity, including availability
(b)
Daily information on such account activity exceptions as positive pay mismatches
and NSF deposited checks
(c)
Monthly information on account activity including debits and credits
(d)
Monthly information on bank charges and fees
14.
OPQR refers to:
(a)
Operations, policies, qualification, reengineering
(b)
Outsourcing, procedures, quality, reengineering
(c)
Organization, process, quantification, reengineering
(d)
Opportunities, plans, questions, reengineering15. Standards such as benchmarking and management-by-objectives (MBOs) are flawed for
which one of the following reasons:
(a)
They measure performance quality but not cost efficiency.
(b)
The benchmark or MBO restates the goals of the organization.
(c)
Priorities not anticipated when the standards were established may intercede.
(d)
The standards are revised to retain relevance to corporate goals.
16.
The largest opportunities for cashflow reengineering typically fall outside of the financefunction because:
(a)
Sales, production and other functions assume responsibility for the management of 
the cash deriving from their activities.
(b)
Unlike sales, production, and other functions, finance is a well-defined discipline
with a body of knowledge regarding cash.
(c)
Responsibilities for cash are typically assigned to accounting rather than finance staff.
(d) SBU managers generally negotiate with banks directly for their own requirements.
17.
The use of the scenario impact table is encouraged to:
(a)
Fully examine issues relating to bank and vendor outsourcing
(b)
Thoroughly present all available options regarding internal improvements
(c)
Avoid the necessity of evaluating the baseline current system
(d)
Manage the voluminous data gathered in a cashflow reengineering analysis
18.
The modern view of working capital management is that:
(a)
Working capital is desirable and a boost to financial performance.
(b)
Current assets contribute significantly to return-on-equity.
(c)
Current liabilities should be funded from on-going operations rather than from cur-
rent assets.
(d)
The current ratio should be minimized to reduce under-performing assets.
187 A Practical Approach for Cashflow Reengineering 

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->