CIMA Exam CIMAPRA19-F01-1 Topic 5 Question 71 Discussion

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

Question #: 71
Topic #: 5

[All CIMAPRA19-F01-1 Questions]

Which TWO of the following would improve a company's short term cash flow position?

APostponing non essential capital expenditure

BIncreasing the working capital cycle by making payments to suppliers early

CTaking advantage of bulk discounts offered on inventory purchases

DReducing levels of inventory by implementing a just in time system for purchasing

EPaying a bonus to staff for exceptional performance

Show Suggested Answer

Suggested Answer: D

by Belen at Jul 06, 2023, 08:48 PM

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Corazon

2 months ago

Somebody call the CFO, we've got a cash flow emergency! Forget the bonuses, let's just start fining the employees instead.

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Gerry

1 months ago

D) Reducing levels of inventory by implementing a just in time system for purchasing

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Adrianna

1 months ago

A) Postponing non essential capital expenditure

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Clement

2 months ago

I agree with the other candidates. A and D are the way to go. Although, a just-in-time system might be a bit of a stretch for some companies to implement quickly.

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Josefa

25 days ago

I agree, implementing a just-in-time system may take time but it's worth it in the long run.

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Lai

1 months ago

D) Reducing levels of inventory by implementing a just in time system for purchasing

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Tamesha

1 months ago

A) Postponing non essential capital expenditure

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Clement

2 months ago

Haha, paying a bonus to staff? That's the last thing you'd do to improve cash flow! E is definitely out.

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Wava

6 days ago

D) Reducing levels of inventory by implementing a just in time system for purchasing

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Tammy

7 days ago

C) Taking advantage of bulk discounts offered on inventory purchases

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Stephaine

11 days ago

A) Postponing non essential capital expenditure

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Lorrine

20 days ago

B) Increasing the working capital cycle by making payments to suppliers early

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Aleisha

26 days ago

D) Reducing levels of inventory by implementing a just in time system for purchasing

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Freeman

1 months ago

C) Taking advantage of bulk discounts offered on inventory purchases

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Nilsa

2 months ago

A) Postponing non essential capital expenditure

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Chan

2 months ago

I believe reducing levels of inventory by implementing a just in time system would also help improve cash flow.

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Santos

2 months ago

I agree with Carman. It would free up cash that can be used for other essential expenses.

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Carman

2 months ago

I think postponing non essential capital expenditure would help improve short term cash flow.

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Daniela

2 months ago

I disagree. I believe taking advantage of bulk discounts on inventory purchases would be more beneficial for short term cash flow.

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Elenora

2 months ago

I'm not sure about B. Paying suppliers early might actually hurt cash flow in the short-term, no?

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Cyril

1 months ago

User 2: D) Reducing levels of inventory by implementing a just in time system for purchasing is also a good way to improve short term cash flow.

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Rosalind

1 months ago

User 1: A) Postponing non essential capital expenditure would definitely help.

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Luz

2 months ago

A and D seem like the obvious choices to improve short-term cash flow. Postponing non-essential spending and reducing inventory levels are textbook strategies.

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