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CIMAPRA19-F01-1 Exam - Topic 4 Question 89 Discussion

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

Question #: 89
Topic #: 4

[All CIMAPRA19-F01-1 Questions]

Which of the following is correct?

The primary purpose of a cash budget prepared on a monthly basis is to determine:

Anext month's sales volumes.

Bthe amount of inventory to purchase in the following month.

Cwhen to pay employees salaries.

Dwhether there will be sufficient cash in the bank to meet requirements.

Show Suggested Answer

Suggested Answer: D

by Charlesetta at May 29, 2024, 06:01 AM

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Bea

8 months ago

Agreed, D is the right choice!

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Rosalind

8 months ago

Really? I thought it was more about sales forecasts.

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Dannette

8 months ago

Wait, isn't it also about planning expenses?

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Vilma

8 months ago

Definitely D, cash sufficiency is key.

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Gerri

9 months ago

It's all about cash flow management!

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Loren

9 months ago

I vaguely recall that the cash budget is focused on cash inflows and outflows, so D seems to fit best, but I hope I’m not missing something!

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Stephaine

9 months ago

I’m a bit confused because I thought cash budgets also help with planning expenses like salaries. Could it be C instead?

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Joaquin

9 months ago

I remember practicing a question like this, and I believe the cash budget helps with cash availability, which makes me think D is correct too, but I’m not entirely sure.

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Amalia

9 months ago

I think the cash budget is mainly about managing cash flow, so I’m leaning towards option D.

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Milly

9 months ago

I'm a bit confused by this question. Is it asking about the purpose of a cash budget, or something else? I'll have to review my notes to make sure I understand the concept before answering.

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Aide

9 months ago

Okay, I've got this. A cash budget is used to determine whether the company will have enough cash on hand to meet its obligations, so the correct answer must be D.

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Tequila

9 months ago

Hmm, I'm a little unsure about this one. I know cash budgets are important for financial planning, but I'm not totally clear on the specific purpose. I'll have to think this through carefully.

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Carma

9 months ago

This seems like a pretty straightforward question about the purpose of a cash budget. I'm pretty confident I can figure this out.

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Nettie

10 months ago

Ugh, I hate these types of questions. There's always some tricky wording or obscure attack that I'm not familiar with. Let me re-read the options and see if I can eliminate the ones that don't fit.

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Devora

10 months ago

I remember we talked about monitor mode and how it collects data. Could that be what the question is hinting at?

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Larae

10 months ago

The fstab file? I'm drawing a blank on that one. Let me think it through step-by-step. Okay, I think it has to do with mounted filesystems, so I'll go with option B.

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Eloisa

2 years ago

I agree with Hildred. The primary purpose of a cash budget is to ensure there is enough cash to cover expenses.

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Hildred

2 years ago

I think the correct answer is D) whether there will be sufficient cash in the bank to meet requirements.

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Annabelle

2 years ago

Hold on, is this a trick question? What if the answer is actually E) all of the above? I'm feeling lucky, so I'll go with that!

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Kassandra

2 years ago

B) makes the most sense to me. Knowing how much inventory to purchase is key to managing cash flow effectively.

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Micaela

2 years ago

Hmm, I'll have to go with D). This question is a no-brainer. The cash budget is all about making sure the company doesn't run out of cash, right?

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Alethea

2 years ago

I'm going with C). Paying employees on time is a crucial part of any business, and the cash budget should help with that.

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Alecia

2 years ago

I'm going with C) as well. It's important to pay employees on time to keep the business running smoothly.

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Vilma

2 years ago

I agree with Vilma, D) seems like the right answer to me.

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Colton

2 years ago

I think D) is correct. We need to make sure we have enough cash to meet our requirements.

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Rory

2 years ago

D) seems like the obvious choice here. The cash budget is all about managing cash flows and ensuring there's enough cash to meet the company's obligations.

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Glendora

2 years ago

Definitely, cash flow is crucial for a business to operate smoothly. Option D is the way to go.

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Leonora

2 years ago

I agree, option D makes the most sense. It's important to make sure there's enough cash on hand.

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Sophia

2 years ago

D) whether there will be sufficient cash in the bank to meet requirements.

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Deeann

2 years ago

Definitely, cash flow is crucial for a business to operate smoothly. Option D is the way to go.

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Helaine

2 years ago

I agree, option D makes the most sense. It's important to make sure there's enough cash on hand.

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Ma

2 years ago

A) next month's sales volumes.

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