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CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 91 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 91
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 Elsa at Jul 03, 2024, 03:49 AM

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Kimbery
4 months ago
D, hands down. Financial surplus? Sounds like a dream come true for any organization. Maybe they can use that extra cash to buy a pool filled with gold coins, like Scrooge McDuck!
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Ronald
4 months ago
Hmm, I'd have to go with A. Financial intermediation is the key to managing these kinds of imbalances. Gotta get those bankers involved, am I right? *wink wink*
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Yoko
3 months ago
Agreed, it's all about managing those imbalances with the help of financial intermediation.
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Tiffiny
3 months ago
Definitely, getting those bankers involved can help balance things out.
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Billye
4 months ago
I think A is the right choice. Financial intermediation is crucial in this situation.
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Chau
5 months ago
B seems like the most logical choice here. The organization is experiencing a lack of financial synchronization between their income and expenditure. Simple stuff, really.
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Grover
4 months ago
Absolutely. It's all about managing finances effectively to ensure stability and growth.
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Sylvie
4 months ago
So true. It's important for organizations to balance their income and expenditure to avoid financial troubles.
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Melvin
4 months ago
Yeah, definitely. When income is lower than expenditure, there's definitely a lack of financial synchronization.
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Ozell
4 months ago
I agree, B does seem like the most logical choice. It's all about that financial synchronization.
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Valentin
5 months ago
Clearly, the answer is C. Without equity capital, the organization would be in deep trouble with more outflow than inflow. Gotta have that cash cushion, am I right?
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Antonio
3 months ago
Actually, I believe the correct answer is C. Equity capital is essential for covering expenses when income is lower than expenditure.
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Bette
3 months ago
I think the answer is D. A financial surplus means the organization has more income than expenditure.
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Gertude
3 months ago
Yes, you're right. Without equity capital, it would be difficult for the organization to cover its expenses.
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Lucy
3 months ago
Having equity capital is crucial for organizations to maintain financial stability in the short term.
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Corazon
4 months ago
I agree, without equity capital, the organization would struggle to cover its expenses.
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Anissa
4 months ago
Yes, you're right. Equity capital is definitely needed to cover the shortfall in income compared to expenditure.
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Joni
5 months ago
Good point, maybe it's actually A) financial intermediation then.
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Nicolette
5 months ago
But wouldn't a financial surplus mean there is more income than expenditure?
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Joni
5 months ago
I disagree, I believe it's B) lack of financial synchronisation.
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Nicolette
6 months ago
I think it's D) financial surplus.
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