CIMA Exam CIMAPRA19-F01-1 Topic 6 Question 14 Discussion

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

Question #: 14
Topic #: 6

AB has been asked to analyze the receivables days of an entity with a view to improving the working capital cycle.

The following results have been produced for receivable days:

Which of the following is NOT an explanation of why the days have increased?

AThe entity has increased turnover for year ended 31 December 20X2 by offering extended credit terms.

BThe entity has made substantial sales to overseas entities in the last few months of the year ended 31 December 20X2.

CThe entity has transferred all receivables collections to a factoring agency during 20X2.

DAn inexperienced credit controller was employed in the last few months of year ended 31 December and requires substantial training.

Show Suggested Answer

Suggested Answer: C

by Paz at May 09, 2022, 06:45 PM

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