• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

question 59 of bpp kit version 2020-2021

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › question 59 of bpp kit version 2020-2021

  • This topic has 1 reply, 2 voices, and was last updated 6 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 30, 2022 at 9:41 am #662145
    hm1995
    Participant
    • Topics: 49
    • Replies: 11
    • ☆☆

    the question states:

    Which statement best reflects an aggressive working capital finance policy?

    -More short-term finance is used because it is cheaper although it is risky.
    – Investors are forced to accept lower rates of return.
    – More long-term finance is used as it is less risky.
    – Inventory levels are reduced.

    the answers shows the correct answer to be the first option. why is it so?
    and why is the last option of (inventory levels are reduced) not correct as it is also a aggressive policy

    July 30, 2022 at 10:04 am #662150
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51585
    • ☆☆☆☆☆

    The financing policy is looking at how the finance is being raised – whether short-term (aggressive) or long-term (conservative). The first option is certainly correct.

    Reducing inventory levels is something all companies should consider but is nothing to do with how the finance itself is being raised.

    I do discuss the financing of working capital in my free lectures. The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • afital12 on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • afital12 on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • John Moffat on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy