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CIMAPRA19-F01-1 Exam - Topic 4 Question 97 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 97
Topic #: 4
[All CIMAPRA19-F01-1 Questions]

LM is preparing its cash forecast for the next three months.

Which of the following items should be left out of its calculations?

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Suggested Answer: C

by Raymon at Sep 13, 2024, 07:24 PM

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Tonette
6 months ago
Not sure about the rental payment, feels like it should count.
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Simona
6 months ago
New bank loan should be included, right?
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Dylan
6 months ago
Wait, are we really ignoring the expected loss on land? Seems important.
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Claudio
7 months ago
I agree, that shouldn't affect the forecast.
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Alica
7 months ago
Definitely leave out last year's tax payment!
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Bobbye
7 months ago
The rental payment on the leased vehicle seems like it should definitely be included in the forecast, but I can't recall if the tax payment is relevant.
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Cristal
7 months ago
I remember a practice question where we had to consider only current cash inflows and outflows, so maybe the bank loan should be included?
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France
8 months ago
I'm not entirely sure, but I feel like the expected loss on the land might be something we shouldn't include either.
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Svetlana
8 months ago
I think we should exclude the tax payment related to last year's profits since it doesn't affect current cash flow.
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Nada
8 months ago
I've got a good feeling about this one. I'll start by considering each item and whether it's a cash inflow or outflow, and then determine if it's relevant for the short-term cash forecast.
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Elza
8 months ago
Okay, let's see. I think the key is to distinguish between operating cash flows and financing/investing activities. The tax payment and rental payment are likely operating, while the new loan and land disposal are more financing/investing.
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Ronald
8 months ago
Hmm, I'm a bit unsure about this one. I need to think carefully about which items would be relevant for the cash forecast versus those that are more long-term or one-time in nature.
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Cornell
8 months ago
This seems pretty straightforward. I'd focus on identifying the items that are not directly related to the cash forecast for the next three months.
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Rashad
2 years ago
Is this a trick question? I mean, who forgets to include rental payments in their cash forecast? That's like Accounting 101!
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Lili
2 years ago
Jade: Yeah, I see your point. It's important to focus on cash inflows and outflows that are directly related to the business operations.
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Gracia
2 years ago
User 3: I'm not sure, but I think the tax payment due from last year's profits should be left out.
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Jade
2 years ago
User 2: I think the item that should be left out is the expected loss on the disposal of the piece of land.
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Kent
2 years ago
User 1: I agree, rental payments should definitely be included in the cash forecast.
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Mariann
2 years ago
I'm going with D. Rental payments are an operating expense and are crucial for the cash forecast.
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Annette
2 years ago
C) Expected loss on the disposal of a piece of land.
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Refugia
2 years ago
B) Receipt of a new bank loan raised for the purpose of purchasing new machinery.
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Rozella
2 years ago
A) Tax payment due, that relates to last year's profits.
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Joye
2 years ago
Ha! Rental payments on a leased vehicle? That's a no-brainer. Of course that should be included in the cash forecast.
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Hubert
2 years ago
Hmm, I'm not sure. But I do know that taxes and losses on disposals are definitely cash flow items that should be included.
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Ocie
2 years ago
D) Rental payment on a leased vehicle.
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Donte
2 years ago
C) Expected loss on the disposal of a piece of land.
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Elenor
2 years ago
B) Receipt of a new bank loan raised for the purpose of purchasing new machinery.
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Chantay
2 years ago
A) Tax payment due, that relates to last year's profits.
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Janessa
2 years ago
But what about the tax payment due? Shouldn't we include that in our calculations?
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Lili
2 years ago
I agree with Yasuko. It's a one-time loss that shouldn't affect our cash forecast.
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Yasuko
2 years ago
I think we should leave out the expected loss on the disposal of the land.
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Louann
2 years ago
I think the answer is B. A new bank loan is a financing activity and should not be included in the cash forecast.
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Bernadine
2 years ago
C is a non-cash item and should be excluded from the calculations.
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Reita
2 years ago
A is definitely important to consider for cash forecast.
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Leonardo
2 years ago
I think D should also be left out, as it is a regular expense.
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Andree
2 years ago
I agree, B should be left out of the calculations.
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Roosevelt
2 years ago
Yes, it is a financing activity and not part of the operating cash flow.
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Kallie
2 years ago
I agree, the new bank loan should not be included in the cash forecast.
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