CIMA Exam CIMAPRA19-F01-1 Topic 2 Question 66 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 66
Topic #: 2

PZ has the following working capital ratios:

Which of the following could be the reason for the movements?

APZ has introduced a new policy to take discounts from suppliers during 20X1.

BThe workforce of PZ have been on strike for a month during 20X1 but deliveries of inventory have still been received by the entity.

CA new credit controller has been employed who has been more rigorous with their collection procedure of receivables.

DPZ has implemented a just-in-time system of ordering inventory during 20X1.

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Suggested Answer: C

by Alline at Feb 26, 2023, 01:21 AM

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2 days ago

I disagree, I believe it's because of the just-in-time system of ordering inventory.

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3 days ago

I think the reason for the movements could be because of the new credit controller.

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