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

Which TWO of the following would improve a company's short term cash flow position?
D) Reducing levels of inventory by implementing a just in time system for purchasing
A) Postponing non essential capital expenditure
B) Increasing the working capital cycle by making payments to suppliers early
C) Taking advantage of bulk discounts offered on inventory purchases
E) Paying a bonus to staff for exceptional performance

CIMAPRA19-F01-1 Exam - 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?

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Suggested Answer: D

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

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Chau
10 months ago
Isn't making early payments to suppliers risky for cash flow?
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Wilda
10 months ago
Bulk discounts are a great way to save cash upfront!
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Avery
10 months ago
Really? I doubt paying bonuses helps cash flow at all.
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Genevive
10 months ago
Agree, reducing inventory levels can help too.
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Charolette
10 months ago
Postponing non essential capital expenditure is a smart move!
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Ashlyn
11 months ago
I feel like paying bonuses might not improve cash flow in the short term. It seems like a nice gesture, but it could strain resources.
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Nida
11 months ago
Taking advantage of bulk discounts sounds like a good idea, but I wonder if it ties up cash in inventory. I need to think more about that.
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Dalene
11 months ago
I remember a practice question where we discussed the importance of managing working capital. Making early payments to suppliers seems counterintuitive for cash flow, right?
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Rosalia
11 months ago
I think postponing non-essential capital expenditure could definitely help with cash flow, but I'm not sure about the impact of reducing inventory levels.
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Willie
11 months ago
Okay, I think I've got a good plan. Let me just double-check the syntax on that `find` and `cp` command to make sure I'm doing it right.
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Cherry
11 months ago
I'm feeling good about this one. Routers are the classic Layer 3 device that interconnect multiple networks, so that's got to be the right answer here. I'll mark that down confidently.
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Talia
11 months ago
Hmm, I'm a bit confused about the wording here. Does "automatically converts all the receiving e-mails" mean I need to create a rule that applies the category to all emails, or just the ones that match the criteria? I'll need to read this carefully.
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Corazon
1 year 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 year ago
D) Reducing levels of inventory by implementing a just in time system for purchasing
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Adrianna
1 year ago
A) Postponing non essential capital expenditure
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Clement
1 year 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
1 year 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 year ago
D) Reducing levels of inventory by implementing a just in time system for purchasing
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Tamesha
1 year ago
A) Postponing non essential capital expenditure
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Clement
1 year 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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Vallie
1 year ago
Definitely, we need to focus on cutting costs and managing inventory better.
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Marti
1 year ago
Yeah, paying a bonus would definitely not help with cash flow.
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Wava
1 year ago
D) Reducing levels of inventory by implementing a just in time system for purchasing
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Tammy
1 year ago
C) Taking advantage of bulk discounts offered on inventory purchases
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Stephaine
1 year ago
A) Postponing non essential capital expenditure
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Lorrine
1 year ago
B) Increasing the working capital cycle by making payments to suppliers early
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Aleisha
1 year ago
D) Reducing levels of inventory by implementing a just in time system for purchasing
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Freeman
1 year ago
C) Taking advantage of bulk discounts offered on inventory purchases
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Nilsa
1 year ago
A) Postponing non essential capital expenditure
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Chan
1 year 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
1 year ago
I agree with Carman. It would free up cash that can be used for other essential expenses.
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Carman
1 year ago
I think postponing non essential capital expenditure would help improve short term cash flow.
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Daniela
1 year 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
1 year 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 year 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 year ago
User 1: A) Postponing non essential capital expenditure would definitely help.
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Luz
1 year 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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Laticia
1 year ago
True, but paying a bonus to staff might not be the best choice for short-term cash flow.
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Janine
1 year ago
Taking advantage of bulk discounts on inventory purchases could also be beneficial.
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Huey
1 year ago
I agree, postponing non-essential spending and implementing a just in time system can really help.
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Elke
1 year ago
A and D are definitely the best options to improve short-term cash flow.
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Nan
1 year ago
I agree with Eun. Reducing levels of inventory by implementing a just in time system could also help.
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Eun
1 year ago
I think postponing non essential capital expenditure would help improve short term cash flow.
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