SAP Financial Accounting (SAP FI) Practice Exam

Which of these is a primary responsibility of asset management in an organization?

1. Handling all revenue transactions

2. Managing fixed asset records

3. Overseeing cash flow projections

4. Controlling inventory levels

The correct answer is: Managing fixed asset records

The primary responsibility of asset management in an organization is managing fixed asset records. This function involves tracking, documenting, and maintaining the details of fixed assets, such as buildings, machinery, and equipment, throughout their lifecycle. It ensures that all asset-related information, including acquisition costs, depreciation, and disposal processes, is accurately recorded and monitored. Effective asset management contributes to the organization's financial reporting and compliance, as well as strategic planning for future investments. In contrast, handling all revenue transactions pertains to revenue management or accounting functions rather than asset management. Overseeing cash flow projections involves managing the organization’s liquidity and is typically a responsibility of financial planning or treasury departments. Controlling inventory levels is related to inventory management, which focuses on the goods available for sale rather than long-term fixed assets. Thus, managing fixed asset records is distinct and essential to the asset management function within an organization.