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intermediate risk

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › intermediate risk

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • April 19, 2021 at 7:32 pm #618249
    lewisrob
    Member
    • Topics: 8
    • Replies: 0
    • ☆

    Which of the following working capital policies could be considered to be intermediate risk?

    (1) Low levels of working capital, predominantly financed using long-term debt

    (2) Low levels of working capital, predominantly financed using short-term debt

    (3) High levels of working capital, predominantly financed using short-term debt

    A.
    Policies (1) and (3)

    B.
    Policies (2) and (3)

    C.
    Policy (2)

    D.
    All three policies

    E.
    Policy (1)

    i am not sure for that one and my tutor at university doesn’t upload the answers i will be thankful

    April 20, 2021 at 6:31 am #618269
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54795
    • ☆☆☆☆☆

    There is no definition of ‘intermediate risk’ although I would choose policy 2 for the reasons I explain in my free lectures.

    It is ridiculous that your tutor does not provide answers. You should demand answers and explanations otherwise it is all pointless!!

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