Cyber Monday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 88
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

In the short term, if an organisation's income is lower than its expenditure, it is an example of:

Afinancial intermediation

Black of financial synchronisation

Cwhy equity capital is needed

Dfinancial surplus

Show Suggested Answer

Suggested Answer: B

by Devora at May 21, 2024, 01:09 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Mickie

6 months ago

Ah, the age-old struggle of income vs. expenditure. I'd say the answer is C. Equity capital is the way to go, my friends. Unless you're planning on becoming a medieval alchemist and turning lead into gold, of course.

upvoted 0 times

Jolanda

6 months ago

I agree with you, C seems like the most logical choice. We need equity capital to balance things out.

upvoted 0 times

...

Rossana

6 months ago

I'm not so sure, I think D might be the answer. A financial surplus sounds like a good thing to have.

upvoted 0 times

...

Gregoria

6 months ago

I think you're right, C is the answer. Equity capital is definitely needed in that situation.

upvoted 0 times

...

...

Carlton

6 months ago

Hmm, this is a tricky one. I'm going to have to go with C. Equity capital is the solution when you're running a deficit. Gotta keep that balance sheet healthy!

upvoted 0 times

Margurite

5 months ago

Yeah, it's important to have that financial cushion when income is lower than expenses.

upvoted 0 times

...

Eden

5 months ago

Actually, I believe C is the answer. Equity capital is necessary when income is lower than expenditure to balance things out.

upvoted 0 times

...

Veronika

5 months ago

I think you're right, C does make sense. Equity capital can help bridge that gap.

upvoted 0 times

...

Oretha

5 months ago

I agree with you, D seems like the right choice. It's important to have a surplus for financial stability.

upvoted 0 times

...

Eugene

6 months ago

Yeah, it's important to have that financial cushion to cover any shortfalls in income.

upvoted 0 times

...

Xuan

6 months ago

I think D is the correct answer. A financial surplus means income is higher than expenditure.

upvoted 0 times

...

Paz

6 months ago

I think you're right, C is the correct answer. Equity capital can help balance out the deficit.

upvoted 0 times

...

...

Tora

7 months ago

D. Financial surplus? Really? This is the opposite of what the question is asking. I'm pretty sure the correct answer is A, financial intermediation.

upvoted 0 times

Markus

6 months ago

Yeah, I agree. A) financial intermediation makes more sense in this context.

upvoted 0 times

...

Zachary

6 months ago

I think you're right, it's definitely not D. Financial surplus doesn't match the scenario.

upvoted 0 times

...

...

Launa

7 months ago

I'd go with B. Lack of financial synchronisation is the issue here. The organisation needs to better align its income and expenditure.

upvoted 0 times

...

Emile

7 months ago

Clearly, the answer is C. Equity capital is needed to cover the shortfall when expenses exceed income. This is a basic financial principle.

upvoted 0 times

Jacki

6 months ago

C

upvoted 0 times

...

Becky

6 months ago

That makes sense. Equity capital provides a cushion for organizations when they have a financial shortfall.

upvoted 0 times

...

Dana

6 months ago

B

upvoted 0 times

...

Mignon

6 months ago

C

upvoted 0 times

...

Suzan

7 months ago

A

upvoted 0 times

...

...

az-700 pass4success az-104 200-301 200-201 cissp 350-401 350-201 350-501 350-601 350-801 350-901 az-720 az-305 pl-300

Warning: Cannot modify header information - headers already sent by (output started at /pass.php:70) in /pass.php on line 77