CIMA Exam CIMAPRA19-F01-1 Topic 5 Question 71 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 71
Topic #: 5

[All CIMAPRA19-F01-1 Questions]

Which TWO of the following would improve a company's short term cash flow position?

APostponing non essential capital expenditure

BIncreasing the working capital cycle by making payments to suppliers early

CTaking advantage of bulk discounts offered on inventory purchases

DReducing levels of inventory by implementing a just in time system for purchasing

EPaying a bonus to staff for exceptional performance

Show Suggested Answer

Suggested Answer: D

by Belen at Jul 06, 2023, 08:48 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Clement

7 days ago

Haha, paying a bonus to staff? That's the last thing you'd do to improve cash flow! E is definitely out.

upvoted 0 times

...

Chan

11 days ago

I believe reducing levels of inventory by implementing a just in time system would also help improve cash flow.

upvoted 0 times

...

Santos

12 days ago

I agree with Carman. It would free up cash that can be used for other essential expenses.

upvoted 0 times

...

Carman

13 days ago

I think postponing non essential capital expenditure would help improve short term cash flow.

upvoted 0 times

...

Daniela

14 days ago

I disagree. I believe taking advantage of bulk discounts on inventory purchases would be more beneficial for short term cash flow.

upvoted 0 times

...

Elenora

15 days ago

I'm not sure about B. Paying suppliers early might actually hurt cash flow in the short-term, no?

upvoted 0 times

...

Luz

19 days ago

A and D seem like the obvious choices to improve short-term cash flow. Postponing non-essential spending and reducing inventory levels are textbook strategies.

upvoted 0 times

...

Nan

22 days ago

I agree with Eun. Reducing levels of inventory by implementing a just in time system could also help.

upvoted 0 times

...

Eun

26 days ago

I think postponing non essential capital expenditure would help improve short term cash flow.

upvoted 0 times

...