Question

Which of the following tasks undertaken within a corporate office are likely to fall under the supervision of the treasurer? The controller?

a. Arranging to extend a line of credit

b. Arranging with an investment bank for a foreign exchange transaction

c. Producing a detailed analysis of the cost structure of the company’s alternative product lines

d. Taking cash payments for company sales and purchasing U.S. Treasury Bills

e. Filing quarterly requirements with the Securities and Exchange Commission

Answer 1

Treasurer and controller both work within the finance department of the company. The treasurer is more focused on management of money, investing in treasury bills, money market instruments e.tc. where as the controller is more focused on the accounting part.

· Arranging to extend a line of credit would be treasurer job to find out which banks is providing at suitable rates.

· This would again be a treasurer job to manage foreign exchange transaction.

· This would be the controller task produce the detailed cost structure.

· Short-term money management is done by the treasurer.

· Filing quarterly requirement with the SEC would be controllers’ task.