CIMA Exam CIMAPRA19-F01-1 Topic 5 Question 76 Discussion

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

Question #: 76
Topic #: 5

[All CIMAPRA19-F01-1 Questions]

A conservative policy for financing working capital is one where short-term finance is used to fund:

AAll of the fluctuating current assets and part of the permanent current assets.

BPart of the fluctuating current assets, but no part of the permanent current assets.

CAll of the fluctuating current assets, but no part of the permanent current assets.

DPart of the fluctuating current assets and part of the permanent current assets.

Show Suggested Answer

Suggested Answer: C

by Salome at Oct 19, 2023, 02:39 PM

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Deeanna

10 days ago

I'm not sure about this one. I was thinking B might be the right answer, but now I'm second-guessing myself. Financing working capital can be tricky to navigate.

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I think the correct answer is D. It makes sense to use short-term finance to fund both fluctuating and permanent current assets, as this provides more flexibility and efficiency in managing working capital.

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Delfina

19 days ago

But using short-term finance for all fluctuating current assets seems risky.

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Giovanna

24 days ago

I disagree, I believe the answer is C.

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Delfina

25 days ago

I think the answer is A.

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CIMA Exam CIMAPRA19-F01-1 Topic 5 Question 76 Discussion

Contribute your Thoughts:

Deeanna

Jules

Delfina

Giovanna

Delfina