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

PZ has the following working capital ratios:Which of the following could be the reason for the movements?
C) A new credit controller has been employed who has been more rigorous with their collection procedure of receivables.
A) PZ has introduced a new policy to take discounts from suppliers during 20X1.
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.
D) PZ has implemented a just-in-time system of ordering inventory during 20X1.

CIMAPRA19-F01-1 Exam - 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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Desmond
10 months ago
Totally agree, the new policy makes sense for working capital!
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Graham
10 months ago
Wait, how did they keep getting inventory during a strike?
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Carin
10 months ago
Discounts from suppliers? Smart move!
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Herman
11 months ago
Just-in-time inventory is a game changer for cash flow.
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Stephaine
11 months ago
A new credit controller could really tighten up receivables!
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Leonor
11 months ago
I feel like the just-in-time system could reduce inventory costs, but I'm uncertain how it directly relates to the working capital ratios in this case.
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Kenneth
11 months ago
I practiced a similar question about credit control and how it affects receivables. A new credit controller could definitely lead to better cash flow.
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Casie
11 months ago
I think the strike could impact operations, but if deliveries are still coming in, it might not affect working capital as much as other options.
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Veda
11 months ago
I remember discussing how taking discounts from suppliers could improve cash flow, but I'm not sure if that's the main reason for the changes here.
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Stacey
11 months ago
Hmm, I'm a bit unsure about this one. I know Internet gateways are used to connect a VPC to the internet, but I can't quite remember the specifics around how many can be defined. I'll have to think this through.
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Myong
11 months ago
I'm feeling a bit lost on this one. The wording of the answers is tripping me up. Maybe I'll come back to it and try a different question first.
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Willie
11 months ago
Okay, let's see. I'm leaning towards Metrics in Application Gateway, but I want to make sure I'm not missing anything. I'll review the options one more time before answering.
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Flo
1 year 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
1 year 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
1 year 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 year ago
A) PZ has introduced a new policy to take discounts from suppliers during 20X1.
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Tawanna
1 year 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
1 year ago
Implementing a just-in-time system could also have contributed to the changes in the working capital ratios.
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Marylyn
1 year 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
1 year ago
I agree, the credit controller's actions could have a significant impact on the working capital ratios.
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Leonard
1 year 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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Emerson
1 year 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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Telma
1 year ago
C) A new credit controller has been employed who has been more rigorous with their collection procedure of receivables.
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Carman
1 year 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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Ettie
1 year ago
A) PZ has introduced a new policy to take discounts from suppliers during 20X1.
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Valene
1 year 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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Dorethea
1 year ago
C) A new credit controller has been employed who has been more rigorous with their collection procedure of receivables.
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Ashlyn
1 year 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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Isaiah
1 year ago
A) PZ has introduced a new policy to take discounts from suppliers during 20X1.
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Lacresha
1 year 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 year 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 year ago
A) PZ has introduced a new policy to take discounts from suppliers during 20X1.
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Jonell
1 year 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
1 year ago
That's a good point, the just-in-time system could definitely impact working capital ratios.
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Mertie
1 year ago
I disagree, I believe it's because of the just-in-time system of ordering inventory.
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Nell
1 year ago
I think the reason for the movements could be because of the new credit controller.
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