The Need for Financial Management. Financial management - all the activities concemed with obtaining money and using effectively Decide whether the following statements about Financial management are correct or incorrect. State you answer as follows: A-Correct, B=Correct, CuIncorrect etc. No. Statement Correct/incorrect 1 Funds are available when needed now but not in the future, obtained at the lowest possible cost, and used as efficiently as possible, 2 Financing priorities are established in line with organizational goals and objectives. 3 Spending is planned and controlled 4 A firm's credit customers pay their bills on time, and the number of past due accounts is increased 5 Bills are paid promptly to protect the firm's credit rating and its ability to borrow money 6 The funds required for paying the firm's taxes are available when needed to meet tax deadlines 7 Excess cash is invested in certificates of deposit (CDs), government securities, or conservative, marketable securities