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IMANET Exam CMA Topic 2 Question 110 Discussion

Actual exam question for IMANET's CMA exam
Question #: 110
Topic #: 2
[All CMA Questions]

The most direct way to prepare a cash budget for a manufacturing firm into include

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Suggested Answer: D

The most direct way of preparing a cash budget requires incorporation of sales projections and credit terms, collection percentages, estimated purchases and payment terms, and other cash receipts and disbursements. In other words, preparation of the cash budget requires consideration of both inflows and outflows.


by Antonio at Apr 04, 2025, 05:06 AM

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Barb
2 months ago
Option D is the way to prepare a cash budget for a manufacturing firm. It's as simple as that. The other options are like trying to drive a car without wheels.
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Walton
13 days ago
Without a solid cash budget, it can be difficult to make informed financial decisions.
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Stanford
25 days ago
It's important to have a clear understanding of cash flow for a manufacturing firm.
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Phung
27 days ago
Projected sales and purchases, percentages of collections, and terms of payments are key factors to consider.
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Deeann
2 months ago
I agree, option D is definitely the most direct way to prepare a cash budget.
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Pamela
3 months ago
I'm not sure, but C also seems like a good option with projected purchases and net income.
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Eladia
3 months ago
I agree with Brice, D makes sense because it includes sales, purchases, collections, and payments.
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Domitila
3 months ago
Haha, goodwill amortization? Really? That's like trying to bake a cake without flour. Option D is the clear winner here.
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Esteban
1 months ago
It's all about projecting the right numbers for a solid cash budget.
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Lachelle
2 months ago
Projected sales and purchases, percentages of collections, and terms of payments make more sense.
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Dean
2 months ago
Goodwill amortization does seem a bit out of place for a manufacturing firm.
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Stephen
2 months ago
I agree, option D is definitely the most direct way to prepare a cash budget.
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Tasia
3 months ago
I'm with Argelia on this one. Option D covers all the bases. Anything less would be like trying to build a house without a foundation.
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Argelia
3 months ago
D is the way to go! Projected sales and purchases, along with collection and payment terms, are the key components for a cash budget. The other options just don't capture the full picture.
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Fanny
2 months ago
Yes, projected sales and purchases, along with collection and payment terms, are crucial for an accurate cash budget.
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Herminia
2 months ago
I agree, option D covers all the necessary components for a cash budget.
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Brice
3 months ago
I think the answer is D.
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