1. As a financial controller what responsibility will you perform for budgeting?
“Budgeting is one the important management tool for an organization to run its business successfully. So my responsibilities as a financial controller will be to help organization to allocate their financial resources efficiently and effectively. Secondly examine, develop and execute budget and seek new ways to improve efficiency and increase profits.”
2. Tell us what budgeting method do you use?
“There are many budgeting methods like incremental budgeting, zero-based budgeting, priority-based, decision conferencing, performance-based, resource-restricted and many other we usually prefer to use according to nature of the company and current requirements.”
3. What points should be involved while making budgets?
“Well before making budgeting plans for any organization one have to understand the values, strategy and plans, possessing deep knowledge and skills to develop those plans which will be cost effective and cost efficient and have the ability to understand what will be involved in generating and raising funds.”
4. Define VAT?
“VAT is a stand for value added tax is a form of consumption tax.”
5. NPV stands for?
“NPV stands for ‘NET PRESNENT VALUE” one of the evaluation methods”
6. What does contingency amount means?
“Contingency amount is an amount that you put aside to deal with unforeseen events.”
7. What are the ways a company can manipulate cash flows?
“There are lots of ways a company can manipulate its cash flows like cash sales may not be recorded, fictitious allowances and returns given to customers, teeming and leading may be followed and many other.”
8. How will a decrease in financial leverage affect a company’s cost of equity capital, if at all?
Decrease in financial leverage decreases risk and therefore decreases cost of equity
9. Why might a company choose debt over equity financing?
“If borrowing is available at low interest rates and shareholders want to take more risk for more gain”
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