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CIMAPRA19-F01-1 Exam - Topic 5 Question 131 Discussion

Which of the following is NOT a source of short-term finance?
A) Increase in trade receivables
B) Increase in trade payables
C) Debt factoring
D) Increase in a bank overdraft

CIMAPRA19-F01-1 Exam - Topic 5 Question 131 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 131
Topic #: 5
[All CIMAPRA19-F01-1 Questions]

Which of the following is NOT a source of short-term finance?

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Suggested Answer: A

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Chanel
4 days ago
I'm a bit unsure, but I feel like debt factoring (C) is definitely a source of short-term finance, right?
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Louvenia
9 days ago
I remember discussing trade payables in class; they can actually help with short-term finance, so I don't think B is the answer.
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Kimbery
14 days ago
I think the answer might be A, since an increase in trade receivables means more money is tied up in credit sales.
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