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CIPS Exam L4M4 Topic 3 Question 30 Discussion

Actual exam question for CIPS's L4M4 exam

Question #: 30
Topic #: 3

[All L4M4 Questions]

Which of the following should be considered when calculating ratios relating to a supplier's liquidity?

Ainventory

Breserves

Creceivables

Dprofit

Show Suggested Answer

Suggested Answer: C

The correct answer is 'yes- the public sector should advertise as a call for competition'. They do this in the Official Journal of the European Union (OJEU). Public Sector has to be transparent about everything and treat all suppliers equally. So they can't just approach the ones they like.

In the study guide it says OIEU and this is a typo. It's OJEU.

What is The OJEU in 2 minutes or less (trackerintelligence.com)

by Jennie at Feb 08, 2025, 08:06 AM

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Rasheeda

3 months ago

Hmm, should I go with the 'liquid' option? Get it? Liquid? Liquidity? Ah, I crack myself up.

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Amber

3 months ago

This is easy - it's C. Receivables are key for assessing a supplier's ability to pay their short-term obligations.

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Corinne

2 months ago

Oh, I see. Thanks for clarifying!

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Tom

3 months ago

No, it's actually C) receivables

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Ashlyn

3 months ago

I think it's A) inventory

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Willard

3 months ago

C) receivables

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Ricki

4 months ago

Profit? Really? I thought we were looking at liquidity, not profitability. Hmm, let me think this through.

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Martina

2 months ago

B) reserves

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Dana

2 months ago

C) receivables

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Hailey

3 months ago

A) inventory

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Margot

4 months ago

Inventory, reserves, and receivables - got it! Can't forget the cash flow situation.

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Novella

2 months ago

B) reserves

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Verlene

3 months ago

Don't forget about cash flow!

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Alise

3 months ago

C) receivables

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Felicitas

3 months ago

A) inventory

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Vincent

4 months ago

Receivables? Of course! How else will I know if the supplier can pay their bills on time?

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Louis

4 months ago

D) profit

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Karol

4 months ago

C) receivables

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Elmer

4 months ago

A) inventory

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Maira

5 months ago

I believe inventory should also be considered for supplier's liquidity ratios.

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Virgina

5 months ago

I agree with Adelle, receivables are important to assess liquidity.

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Adelle

5 months ago

I think we should consider receivables for supplier's liquidity ratios.

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