CIMA Exam CIMAPRA19-E01-1 Topic 5 Question 69 Discussion

Actual exam question for CIMA's CIMAPRA19-E01-1 exam

Question #: 69
Topic #: 5

[All CIMAPRA19-E01-1 Questions]

Which of the following isNOT a component of the working capital cycle?

AThe average time that raw materials remain in inventory

BThe time taken to produce the goods

CThe time taken by customers to pay for the goods

DThe time taken by the bank to approve lending

Show Suggested Answer

Suggested Answer: A, B, C

by Christiane at Apr 20, 2023, 09:10 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-E01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Alida

1 months ago

The bank's approval time? What does that have to do with anything? Might as well ask 'the time it takes to do your taxes' or 'how long your commute is.' Totally off base.

upvoted 0 times

...

Sharee

1 months ago

I agree with the others. Option D is the clear outlier here. The working capital cycle is all about the internal operations, not external factors like bank approval.

upvoted 0 times

...

Carmelina

1 months ago

Ha! The bank's approval time, really? That's like asking 'which of these is not a type of fruit' and including 'the time it takes to get a driver's license.' Totally random!

upvoted 0 times

Raul

4 days ago

A) The average time that raw materials remain in inventory

upvoted 0 times

...

Blair

2 months ago

I think the key here is understanding what components make up the working capital cycle. Options A, B, and C are all directly related to that cycle, but Option D is not.

upvoted 0 times

Rolande

27 days ago

C) The time taken by customers to pay for the goods

upvoted 0 times

...

Ammie

1 months ago

B) The time taken to produce the goods

upvoted 0 times

...

Lura

1 months ago

A) The average time that raw materials remain in inventory

upvoted 0 times

...

Precious

2 months ago

Option D seems completely irrelevant to the working capital cycle. The bank's approval time has nothing to do with the cycle of raw materials, production, and customer payments.

upvoted 0 times

Solange

27 days ago

Option D seems completely irrelevant to the working capital cycle. The bank's approval time has nothing to do with the cycle of raw materials, production, and customer payments.

upvoted 0 times

...