Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is the primary responsibility of a financial manager?

1. Raising finance and controlling financial resources

2. Conducting audits and ensuring compliance

3. Preparing tax returns and financial statements

4. Managing marketing and sales departments

The correct answer is: Raising finance and controlling financial resources

The primary responsibility of a financial manager is to raise finance and control financial resources. This role encompasses several critical functions that are essential for the stability and growth of an organization. Financial managers are tasked with sourcing capital, whether through equity, debt, or other means, to meet the organization's funding needs. They must analyze investment opportunities and make decisions that align with the organization's financial goals. Additionally, financial managers oversee the effective use of the financial resources they have raised. This includes budgeting, forecasting, and monitoring financial performance to ensure that the organization operates efficiently and maintains profitability. By managing financial risks and ensuring adequate liquidity, financial managers play a vital role in supporting the strategic direction of the organization. While conducting audits and ensuring compliance, preparing tax returns and financial statements, and managing marketing and sales departments are also important functions within a business, they fall outside the primary functions of a financial manager. Audits focus on verifying the accuracy of financial information and compliance with regulations, while tax-related tasks focus on meeting legal obligations. Marketing and sales management pertain to revenue generation rather than financial stewardship, which is the central focus of a financial manager's role.