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CIMAPRA19-F01-1 Exam - Topic 5 Question 76 Discussion

Posted by Salome on Oct 19, 2023 at 02:39 PM

A conservative policy for financing working capital is one where short-term finance is used to fund:

Suggested Answer: C

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38 comments · newest first
TY
Tyra 11 months ago
I’m surprised this is even a question!
AM
Ammie 11 months ago
Wait, are we really considering D? That sounds off.
ME
Meghan 11 months ago
C seems too risky for a conservative policy.
BL
Blair 12 months ago
I think B makes more sense, though.
MI
Micheline 12 months ago
A is definitely the right choice!
JU
Justine 1 year ago
I thought we learned that conservative financing includes part of the permanent assets too, which makes me lean towards option A or D.
LE
Levi 1 year ago
I feel like the conservative approach would involve covering all fluctuating assets, but I'm confused about the permanent ones.
DE
Delfina 1 year ago
I remember practicing a question like this, and I think it was about only funding fluctuating assets. So, maybe option B?
CH
Chaya 1 year ago
I think a conservative policy means using short-term finance for both fluctuating and some permanent assets, but I'm not entirely sure.
KA
Karan 1 year ago
I feel pretty good about this question. The key is understanding that a conservative policy means using short-term finance only for the fluctuating current assets, not the permanent ones. I'll select option C.
FE
Felice 1 year ago
This is a tricky one. I'm not entirely confident, but I'm leaning towards option D since it mentions using short-term finance for both fluctuating and permanent current assets.
EA
Earleen 1 year ago
Okay, I think I've got this. A conservative policy means using short-term finance for the fluctuating current assets, but not the permanent ones. I'll go with option C.
RO
Rodolfo 1 year ago
Hmm, I'm a bit unsure about the distinction between fluctuating and permanent current assets. I'll need to review my notes to make sure I understand the concepts before attempting this.
PA
Paris 1 year ago
This looks like a straightforward question on working capital financing. I'll need to carefully consider the differences between fluctuating and permanent current assets.
CO
Cordelia 1 year ago
I've got this! The business agreement and billing agreement are the two correct options that can be assigned to a Master Agreement.
CH
Christa 1 year ago
I'm not too sure, but I feel like it could be line extension? They both sound similar in that context.
CH
Chauncey 1 year ago
I've got a strategy for this. I'll start by identifying the key terms and then apply the logic.
OR
Oretha 1 year ago
I'm pretty sure the answer is D. netmiko is a popular library that's built on top of Paramiko and makes it easier to interact with network devices over SSH.
MA
Mariann 1 year ago
I'm feeling a bit like a financial magician trying to figure this one out. Maybe I should just wave my wand and hope for the best? No, wait, that's not how it works. I'll stick with D, the safe bet.
VA
Val 1 year ago
↳ replying to Mariann
Let's go with D then, better safe than sorry.
EU
Eura 1 year ago
↳ replying to Mariann
I'm not sure, but D does sound like a conservative approach.
EL
Ellen 1 year ago
↳ replying to Mariann
I agree, D seems like the safest option.
WI
Willodean 1 year ago
↳ replying to Mariann
I think D is the best choice here.
TA
Tanja 1 year ago
Ah, the age-old dilemma of short-term vs. long-term financing. I'm going to have to go with D on this one. It's the conservative approach, and we all know the finance world loves a good dose of conservatism!
PA
Pamella 1 year ago
↳ replying to Tanja
D does seem like the most conservative approach for financing working capital. It's better to be safe than sorry.
DO
Dorothea 1 year ago
↳ replying to Tanja
I think D is the best choice too. It's always better to be on the conservative side.
RE
Rebbecca 1 year ago
↳ replying to Tanja
I agree, D seems like the safest option when it comes to financing working capital.
UL
Ula 1 year ago
Haha, this question is like a finance riddle! I'm going to go with C, just to keep things interesting. Who needs permanent current assets anyway?
CA
Carmelina 1 year ago
↳ replying to Ula
I'm not sure about this one, but I'll go with A just to mix things up.
PA
Paris 1 year ago
↳ replying to Ula
I'm going with D, I think it's a mix of both fluctuating and permanent assets.
SU
Susana 1 year ago
↳ replying to Ula
I think C is the right choice too. Let's see if we're correct!
DE
Deeanna 2 years ago
I'm not sure about this one. I was thinking B might be the right answer, but now I'm second-guessing myself. Financing working capital can be tricky to navigate.
HE
Hester 1 year ago
↳ replying to Deeanna
User 2: I'm leaning towards D, actually.
EL
Elizabeth 1 year ago
↳ replying to Deeanna
User 1: I think the answer might be A.
JU
Jules 2 years ago
I think the correct answer is D. It makes sense to use short-term finance to fund both fluctuating and permanent current assets, as this provides more flexibility and efficiency in managing working capital.
DE
Delfina 2 years ago
But using short-term finance for all fluctuating current assets seems risky.
GI
Giovanna 2 years ago
I disagree, I believe the answer is C.
DE
Delfina 2 years ago
I think the answer is A.
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