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Which of the following should be considered when calculating ratios relating to a supplier's liquidity?
Suggested Answer: C
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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)
35 comments · newest first
CO
Cory
11 months ago
All of these can impact liquidity ratios.
DO
Domingo
12 months ago
Totally agree, reserves matter for liquidity!
HU
Huey
12 months ago
Wait, profit? Isn't that more about profitability than liquidity?
MA
Malika
1 year ago
I think inventory is important too.
AL
Alaine
1 year ago
Definitely need to consider receivables!
CI
Ciara
1 year ago
Profit seems less relevant for liquidity calculations, but I might be overthinking it.
AN
Antonio
1 year ago
I practiced a similar question where receivables were emphasized, so I feel confident that they should be included here.
EL
Eliz
1 year ago
I'm a bit unsure about reserves; I don't recall if they directly impact liquidity ratios like receivables do.
CA
Carri
1 year ago
I remember we discussed liquidity ratios in class, and I think inventory is definitely a key factor.
CH
Chanel
1 year ago
Profit? Really? I don't think that has much to do with liquidity. I'm going to go with inventory, receivables, and reserves as the important factors to consider.
CA
Carli
1 year ago
Okay, I've got this. Liquidity is all about how quickly a company can convert assets into cash to pay its bills. Inventory, receivables, and reserves are the key things to look at here.
EA
Earleen
1 year ago
Hmm, not sure about this one. Liquidity ratios can get tricky. I'll need to think carefully about which elements of the balance sheet are most relevant for assessing a supplier's short-term financial health.
TA
Tamar
1 year ago
This seems like a straightforward liquidity question. I'll focus on the key factors that affect a supplier's ability to meet short-term obligations, like inventory, receivables, and reserves.
RA
Rasheeda
1 year ago
Hmm, should I go with the 'liquid' option? Get it? Liquid? Liquidity? Ah, I crack myself up.
AM
Amber
1 year ago
This is easy - it's C. Receivables are key for assessing a supplier's ability to pay their short-term obligations.
CO
Corinne
1 year ago
Oh, I see. Thanks for clarifying!
TO
Tom
1 year ago
No, it's actually C) receivables
AS
Ashlyn
1 year ago
I think it's A) inventory
WI
Willard
1 year ago
C) receivables
RI
Ricki
1 year ago
Profit? Really? I thought we were looking at liquidity, not profitability. Hmm, let me think this through.
MA
Martina
1 year ago
B) reserves
DA
Dana
1 year ago
C) receivables
HA
Hailey
1 year ago
A) inventory
MA
Margot
2 years ago
Inventory, reserves, and receivables - got it! Can't forget the cash flow situation.
NO
Novella
1 year ago
B) reserves
VE
Verlene
1 year ago
Don't forget about cash flow!
AL
Alise
1 year ago
C) receivables
FE
Felicitas
1 year ago
A) inventory
VI
Vincent
2 years ago
Receivables? Of course! How else will I know if the supplier can pay their bills on time?
LO
Louis
1 year ago
D) profit
KA
Karol
2 years ago
C) receivables
EL
Elmer
2 years ago
A) inventory
MA
Maira
2 years ago
I believe inventory should also be considered for supplier's liquidity ratios.
VI
Virgina
2 years ago
I agree with Adelle, receivables are important to assess liquidity.
AD
Adelle
2 years ago
I think we should consider receivables for supplier's liquidity ratios.