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CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 88
Topic #: 1
[All CIMAPRA17-BA1-1 Questions]

In the short term, if an organisation's income is lower than its expenditure, it is an example of:

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Suggested Answer: B

by Devora at May 21, 2024, 01:09 AM

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Mickie
10 months ago
Ah, the age-old struggle of income vs. expenditure. I'd say the answer is C. Equity capital is the way to go, my friends. Unless you're planning on becoming a medieval alchemist and turning lead into gold, of course.
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Jolanda
9 months ago
I agree with you, C seems like the most logical choice. We need equity capital to balance things out.
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Rossana
9 months ago
I'm not so sure, I think D might be the answer. A financial surplus sounds like a good thing to have.
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Gregoria
9 months ago
I think you're right, C is the answer. Equity capital is definitely needed in that situation.
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Carlton
10 months ago
Hmm, this is a tricky one. I'm going to have to go with C. Equity capital is the solution when you're running a deficit. Gotta keep that balance sheet healthy!
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Margurite
9 months ago
Yeah, it's important to have that financial cushion when income is lower than expenses.
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Eden
9 months ago
Actually, I believe C is the answer. Equity capital is necessary when income is lower than expenditure to balance things out.
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Veronika
9 months ago
I think you're right, C does make sense. Equity capital can help bridge that gap.
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Oretha
9 months ago
I agree with you, D seems like the right choice. It's important to have a surplus for financial stability.
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Eugene
9 months ago
Yeah, it's important to have that financial cushion to cover any shortfalls in income.
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Xuan
10 months ago
I think D is the correct answer. A financial surplus means income is higher than expenditure.
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Paz
10 months ago
I think you're right, C is the correct answer. Equity capital can help balance out the deficit.
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Tora
10 months ago
D. Financial surplus? Really? This is the opposite of what the question is asking. I'm pretty sure the correct answer is A, financial intermediation.
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Markus
9 months ago
Yeah, I agree. A) financial intermediation makes more sense in this context.
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Zachary
10 months ago
I think you're right, it's definitely not D. Financial surplus doesn't match the scenario.
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Launa
10 months ago
I'd go with B. Lack of financial synchronisation is the issue here. The organisation needs to better align its income and expenditure.
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Emile
10 months ago
Clearly, the answer is C. Equity capital is needed to cover the shortfall when expenses exceed income. This is a basic financial principle.
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Jacki
9 months ago
C
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Becky
10 months ago
That makes sense. Equity capital provides a cushion for organizations when they have a financial shortfall.
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Dana
10 months ago
B
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Mignon
10 months ago
C
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Suzan
10 months ago
A
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