CIMA Exam CIMAPRA19-F01-1 Topic 4 Question 89 Discussion

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

Question #: 89
Topic #: 4

[All CIMAPRA19-F01-1 Questions]

Which of the following is correct?

The primary purpose of a cash budget prepared on a monthly basis is to determine:

Anext month's sales volumes.

Bthe amount of inventory to purchase in the following month.

Cwhen to pay employees salaries.

Dwhether there will be sufficient cash in the bank to meet requirements.

Show Suggested Answer

Suggested Answer: D

by Charlesetta at May 29, 2024, 06:01 AM

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Eloisa

10 months ago

I agree with Hildred. The primary purpose of a cash budget is to ensure there is enough cash to cover expenses.

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Hildred

10 months ago

I think the correct answer is D) whether there will be sufficient cash in the bank to meet requirements.

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Annabelle

10 months ago

Hold on, is this a trick question? What if the answer is actually E) all of the above? I'm feeling lucky, so I'll go with that!

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Kassandra

10 months ago

B) makes the most sense to me. Knowing how much inventory to purchase is key to managing cash flow effectively.

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Micaela

10 months ago

Hmm, I'll have to go with D). This question is a no-brainer. The cash budget is all about making sure the company doesn't run out of cash, right?

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Alethea

10 months ago

I'm going with C). Paying employees on time is a crucial part of any business, and the cash budget should help with that.

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Alecia

9 months ago

I'm going with C) as well. It's important to pay employees on time to keep the business running smoothly.

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Vilma

10 months ago

I agree with Vilma, D) seems like the right answer to me.

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Colton

10 months ago

I think D) is correct. We need to make sure we have enough cash to meet our requirements.

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Rory

10 months ago

D) seems like the obvious choice here. The cash budget is all about managing cash flows and ensuring there's enough cash to meet the company's obligations.

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Glendora

9 months ago

Definitely, cash flow is crucial for a business to operate smoothly. Option D is the way to go.

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Leonora

10 months ago

I agree, option D makes the most sense. It's important to make sure there's enough cash on hand.

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Sophia

10 months ago

D) whether there will be sufficient cash in the bank to meet requirements.

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Deeann

10 months ago

Definitely, cash flow is crucial for a business to operate smoothly. Option D is the way to go.

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Helaine

10 months ago

I agree, option D makes the most sense. It's important to make sure there's enough cash on hand.

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Ma

10 months ago

A) next month's sales volumes.

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