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CIMA Exam CIMAPRA19-F01-1 Topic 2 Question 66 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 66
Topic #: 2
[All CIMAPRA19-F01-1 Questions]

PZ has the following working capital ratios:

Which of the following could be the reason for the movements?

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Suggested Answer: C

by Alline at Feb 26, 2023, 01:21 AM

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Flo
2 months ago
The new credit controller must be a superhero or something. Imagine the power of their collections prowess! They could probably collect debt from a black hole.
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Letha
10 days ago
C) A new credit controller has been employed who has been more rigorous with their collection procedure of receivables.
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Jani
21 days ago
B) The workforce of PZ have been on strike for a month during 20X1 but deliveries of inventory have still been received by the entity.
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Gearldine
1 months ago
A) PZ has introduced a new policy to take discounts from suppliers during 20X1.
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Tawanna
2 months ago
Taking discounts from suppliers is a smart move, but I don't think it alone would account for such drastic changes in the ratios. The credit controller's efforts seem to be the key factor here.
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Francesco
16 days ago
Implementing a just-in-time system could also have contributed to the changes in the working capital ratios.
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Marylyn
20 days ago
The workforce strike might have affected the ratios, but it seems like the credit controller's role is more influential.
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Kallie
26 days ago
I agree, the credit controller's actions could have a significant impact on the working capital ratios.
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Leonard
2 months ago
I'm not sure about the strike situation. Even if deliveries were still received, the workforce being on strike for a month would likely have some impact on the working capital ratios.
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Isaiah
7 days ago
A) PZ has introduced a new policy to take discounts from suppliers during 20X1.
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Lacresha
2 months ago
Just-in-time inventory management could also be a valid explanation. It helps reduce the amount of cash tied up in inventory, which would boost the working capital ratios.
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Leatha
1 months ago
C) A new credit controller has been employed who has been more rigorous with their collection procedure of receivables.
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Aimee
1 months ago
A) PZ has introduced a new policy to take discounts from suppliers during 20X1.
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Jonell
2 months ago
The new credit controller's rigorous collection procedure seems like the most likely reason for the improved working capital ratios. It's impressive how they were able to collect receivables more efficiently.
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Nell
2 months ago
That's a good point, the just-in-time system could definitely impact working capital ratios.
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Mertie
3 months ago
I disagree, I believe it's because of the just-in-time system of ordering inventory.
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Nell
3 months ago
I think the reason for the movements could be because of the new credit controller.
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