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CIPS Exam L4M4 Topic 3 Question 30 Discussion

Actual exam question for CIPS's L4M4 exam
Question #: 30
Topic #: 3
[All L4M4 Questions]

Which of the following should be considered when calculating ratios relating to a supplier's liquidity?

Show Suggested Answer Hide Answer
Suggested Answer: C

The correct answer is 'yes- the public sector should advertise as a call for competition'. They do this in the Official Journal of the European Union (OJEU). Public Sector has to be transparent about everything and treat all suppliers equally. So they can't just approach the ones they like.

In the study guide it says OIEU and this is a typo. It's OJEU.

What is The OJEU in 2 minutes or less (trackerintelligence.com)


Contribute your Thoughts:

Rasheeda
27 days ago
Hmm, should I go with the 'liquid' option? Get it? Liquid? Liquidity? Ah, I crack myself up.
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Amber
28 days ago
This is easy - it's C. Receivables are key for assessing a supplier's ability to pay their short-term obligations.
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Tom
4 days ago
No, it's actually C) receivables
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Ashlyn
8 days ago
I think it's A) inventory
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Willard
11 days ago
C) receivables
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Ricki
1 months ago
Profit? Really? I thought we were looking at liquidity, not profitability. Hmm, let me think this through.
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Hailey
15 days ago
A) inventory
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Margot
2 months ago
Inventory, reserves, and receivables - got it! Can't forget the cash flow situation.
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Novella
2 days ago
B) reserves
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Verlene
3 days ago
Don't forget about cash flow!
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Alise
12 days ago
C) receivables
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Felicitas
19 days ago
A) inventory
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Vincent
2 months ago
Receivables? Of course! How else will I know if the supplier can pay their bills on time?
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Louis
1 months ago
D) profit
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Karol
2 months ago
C) receivables
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Elmer
2 months ago
A) inventory
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Maira
2 months ago
I believe inventory should also be considered for supplier's liquidity ratios.
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Virgina
2 months ago
I agree with Adelle, receivables are important to assess liquidity.
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Adelle
2 months ago
I think we should consider receivables for supplier's liquidity ratios.
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