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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
12 days 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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Pamela
1 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
1 months ago
I agree with Brice, D makes sense because it includes sales, purchases, collections, and payments.
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Domitila
1 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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Lachelle
8 days ago
Projected sales and purchases, percentages of collections, and terms of payments make more sense.
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Dean
13 days ago
Goodwill amortization does seem a bit out of place for a manufacturing firm.
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Stephen
18 days ago
I agree, option D is definitely the most direct way to prepare a cash budget.
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Tasia
1 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
2 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
27 days ago
Yes, projected sales and purchases, along with collection and payment terms, are crucial for an accurate cash budget.
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Herminia
29 days ago
I agree, option D covers all the necessary components for a cash budget.
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Brice
2 months ago
I think the answer is D.
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