Discuss CIMA CIMAPRA19-F01-1 Exam Topic 6 Question 129

Which of the following are techniques that can be used by a company to ensure they receive timely payment of receivables? Select ALL that apply:

AOffering cash or early payment discount

BCharging interest on late payments

CAssessing credit risk of customers before they are given credit

DOffering extended credit to return customers

EOffering free items

Suggested Answer: A, B, C

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24 comments · newest first

Glenn 1 day ago

E seems pointless. Free items won’t ensure payment.

Nu 6 days ago

I’m not sure about D. Extended credit can backfire.

Ahmad 12 days ago

B is also important. Late fees can deter delays.

Chaya 17 days ago

Definitely! Early discounts motivate payments.

Anissa 22 days ago

I think A and C are key.

Basilia 27 days ago

Overall, A, B, and C seem like the best options.

Brandon 1 month ago

I’d avoid E. It complicates things.

Wendell 1 month ago

I agree, but D might work for loyal customers.

Leanora 1 month ago

A and B together can really boost cash flow.

Roy 2 months ago

C is a must. Knowing your customers is crucial.

Corazon 2 months ago

E seems pointless. Free items won’t guarantee payment.

Miesha 2 months ago

I’m not sure about D. Extended credit can be risky.

Evangelina 2 months ago

B is important too. Late fees can motivate customers.

Clorinda 2 months ago

Definitely! A helps encourage quick payments.

Osvaldo 2 months ago

I think A and C are key.

Marshall 3 months ago

I disagree with offering free items, that won't help cash flow.

Celestina 3 months ago

Surprised E) is even an option here!

Sherly 3 months ago

D) seems risky, not sure it helps with timely payments.

Janine 3 months ago

I think B) is a must too!

Hubert 3 months ago

A) and C) are definitely smart moves!

Ernestine 3 months ago

I feel like assessing credit risk (C) is crucial, but I can't recall if offering free items (E) is a common practice for this purpose.

Helaine 4 months ago

I think B is also a good option since charging interest could encourage timely payments.

Stephaine 4 months ago

I'm not entirely sure about D; offering extended credit seems risky, but it might work for loyal customers.

Raul 4 months ago

I remember discussing cash discounts in class, so I think A is definitely a technique.

CIMAPRA19-F01-1 Exam - Topic 6 Question 129 Discussion