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Finance Flashcards

(57 cards)

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1
Q

Budgeting Process Includes

A

Budget planning, preparation, approval, monitoring, reporting, and revision. (6)

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2
Q

Annual Budget Period

A

January 1st to December 31st.

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3
Q

Budget Process Timeline

A

Begins in August of the preceding year and ends in November.

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4
Q

Budget is approved by

A

PC Limited’s Board of Directors.

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5
Q

Duration to pay suppliers

A

within 45 days.

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6
Q

Processes invoices for vendor payments

A

Accounts Payable Unit (APU)

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7
Q

Invoice Certification is done by

A

user department and procurement department representatives.

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8
Q

APU Reports

A

Provides monthly and weekly reports.

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9
Q

How is credit granted to Long-Term and Spot Customers

A

Credit granted based on credit analysis and limits.

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10
Q

Credit Terms

A

Stated in the Credit Contract.

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11
Q

How often are credit limits Reviewed

A

Credit limits reviewed annually.

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12
Q

Debt Collection is done by

A

Approved Debt Collection Agency.

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13
Q

Fixed Asset Disposal Approved by

A

Endorsed by CFO and approved by CEO.

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14
Q

For Preservation of inventory items

A

First-In-First-Out/First-Expiry-First-Out

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15
Q

Intercompany Loans must comply with

A

arms-length transfer pricing principle.

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16
Q

Intercompany Loans is Approved by

A

Managing Director and CFO.

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17
Q

Proposed final dividends from distributable profits should not exceed

A

80%

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18
Q

Dividends declaration for Wholly Owned Subsidiaries must be

A

endorsed by Head of Finance & Accounts, approved by Managing Director.

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19
Q

Cash must be reserved to

A

Meet capital and operational expenditure for the next 30 days.

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20
Q

Investment Portfolio should be in

A

money market funds (Nigerian Naira) with AAAm, AAAmmf, or Aaa-mf credit rating.

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21
Q

Corporarte income Tax Rates

A

Large companies (30%), medium-sized (20%), small companies (exempted).

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22
Q

CGT Returns are Due by

A

June 30 and December 31.

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23
Q

The Transfer Pricing Regulations apply to various transactions including

Study These Flashcards
A

the sale and purchase of goods and services, financial transactions, and manufacturing arrangements

24
Q

In transfer pricing, PC must

Study These Flashcards
A

Declare relationships with connected persons, file TP declaration or face N10M fine

25
PC's revenue streams are mainly classified into
* Core revenue, * Finance income, * Miscellaneous income
26
PC core revenues include
sales of crude oil and gas, refined products and rendering of technical services
27
PC finance income includes
Fixed income investments, dividend income and rental income
28
PC miscellaneous income includes | (4)
- Disposal of asset, - Registration fees, - Bulk Purchase Agreement (BPA) and - other third-party fees.
29
The budget cycle for a financial year shall be implemented in line with
PC Limited’s approved budget timetable.
30
Approvals for Budget Commitments shall be made in line with
the PC Delegation of Authority DOA/DFA Guidelines.
31
PC Limited and its subsidiaries budget shall be prepared on
an annual basis and derived from the three to five-year strategic business plan of the Company.
32
The annual budget shall be divided into three sections
- revenue budget, - capital expenditure (CAPEX) budget, and - operating expenditure (OPEX) budget.
33
CAPEX shall consist of
- acquisition of movable and non-movable fixed assets, and - execution of capital projects
34
OPEX primarily consists of
all ( both direct and indirect expenditures (salaries, benefits, and overheads) operational expenses for the day to day running of the business
35
Imprest management is
Process of managing and controlling funds reserved for unplanned business expenses.
36
How imprest is kept
Usually kept as - cash or - assigned operational debit cards (P-cards).
37
Custodian Responsibility for imprest
Safeguarding and accounting for funds during operation.
38
P-card Usage
Assigned to specific departments/divisions for payments like - subscriptions, - online training, and - foreign services.
39
Imprest Funding is made by
Treasury Department provides monthly funding (up to N 300,000).
40
How imprest is Audited
Subject to periodic audit by the GRC function.
41
Imprest Funds should not be used for
- loans, - personal commitments, - travel allowances, or - non-office-related expenses.
42
Property plant and Equipment management
Process of - acquiring, - recording, - capitalizing, - transferring, and - disposing of assets owned by PC and its subsidiaries.
43
PP&E Management is carried out to (4)
Ensure adequate procedures for managing PC Limited’s PP&E, including - **tagging**, - **verifying**, - consistent **depreciation** rates, and - recognizing **impairment**.
44
Sub-Processes of PP&E management | (6)
- Asset Acquisition and capitalisation, - Safeguard and Control, - Depreciation, - Impairment, - Transfer, - Disposal
45
PP&E management should Strictly adhere to
Supply Chain Management Policy and Procedural Guide.
46
Inventory management is
Process of managing and tracking inventory items within PC Limited and its subsidiaries.
47
Objectives of inventory management
- Proper **handling** of received materials to eliminate wastage and ensure safety. - **Storage**, preservation, and systematic **distribution** of inventory items; - Up-to-date **documentation** for enhanced accountability.
48
Sub-Sessions Covered in inventory management (6)
- Inventory requisition, - receipt, - issuance, - monitoring and replenishment, - measurement and reconciliation, - disposal
49
What items in inventory are issued first?
Items with close expiry dates
50
Approval of inventory items transfer/disposal requests
CFO of PC Limited or MD of respective subsidiaries
51
Project accounting is
Processes involved in * initiating, * recording, and * reporting **project transactions** from commencement to closure.
52
Project accounting objectives ## Footnote Project controls
Adequately **track** and account for **project costs** on a **project**-by-project and **asset class** basis.
53
Project accounting controls (4)
- Implement controls over **project expenditure**; - Provide timely and accurate **financial status reporting**; - Detect potential budget **overruns**; - **Forecast** estimates to completion.
54
Project accounting Sub-Processes
- Project Approval and Account **Set-Up**; - Project Budget **Monitoring** and Reporting; - Project **Completion** and Certification.
55
Budget Monitoring
- **track** actual expenditure and estimated cost to completion; - Project Accountant prepares a **financial performance report**; Report includes budgeted cost, actual cost, estimated cost, and variance analysis.
56
Approving Authorities for tendered items
BOD Tenders committee levels 1,2,3,4 GCEO
57
Approving Authorities for non-tendered items
BOD GCEO GED GGM GM

PC CBT (9 decks)

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