Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AIWMI Exam CCRA-L2 Topic 9 Question 110 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 110
Topic #: 9
[All CCRA-L2 Questions]

Ms. Mary Brown is a credit rating analyst. She had prepared a detailed report on one of her client, FlyHigh

Airlines Ltd, a company operating chartered aircrafts in Indi

a. As she was heading for a meeting with her superior on the matter, coffee spilled over her set of prepared paper(s). As she was getting late for meeting, instead of preparing entire set she could recollect few numbers from her memory and reconstructed following partial financial table:

An analyst comparing two competitors Comp Systems and Big Tables gathers the data below:

Cash Conversions Cycle:

Comp Systems: 18 days and Big Tables 32 days

Defense Interval Ratio:

Comp Systems: 50 and Big Tables: 20

What can the analyst conclude regarding the liquidity of these companies?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Yoko at Apr 06, 2025, 09:12 PM

Limited Time Offer

25%

Off

Get Premium CCRA-L2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Brianne
12 days ago
I'm leaning towards option D as well. It's always a tricky balancing act between liquidity and cash management. Looks like Comp Systems and Big Tables have found different ways to approach it.
upvoted 0 times
...
Ashton
15 days ago
Wait, did someone spill coffee on the financial table? That's a real bummer. I hope Ms. Mary Brown didn't have to clean up too much of a mess before the meeting.
upvoted 0 times
Carri
1 days ago
Oh no, that must have been stressful for Ms. Mary Brown.
upvoted 0 times
...
...
In
20 days ago
Option D seems like the correct answer to me. Comp Systems has a better cash conversion cycle, but Big Tables manages its cash better according to the defense ratio.
upvoted 0 times
Callie
1 days ago
I agree, option D seems to be the most logical conclusion.
upvoted 0 times
...
...
Gennie
1 months ago
I'm not sure, but D does sound like a logical conclusion.
upvoted 0 times
...
Deandrea
1 months ago
I agree with Vicki, D seems to make sense.
upvoted 0 times
...
Maurine
1 months ago
I'm not sure about this one. The indicators seem to give contradictory results. I might have to go with option C.
upvoted 0 times
Orville
21 days ago
But Comp Systems has a lower Cash Conversion Cycle, indicating better liquidity.
upvoted 0 times
...
Chanel
26 days ago
I agree, the indicators do seem to contradict each other.
upvoted 0 times
...
Beatriz
28 days ago
I think option C is the right choice here.
upvoted 0 times
...
...
Alisha
1 months ago
The question is pretty straightforward. The cash conversion cycle and defense interval ratio clearly show that Comp Systems is more liquid than Big Tables.
upvoted 0 times
...
Vicki
2 months ago
I think the answer is D.
upvoted 0 times
...

Save Cancel