CIMA F2 Advanced Financial Reporting F2 Question # 39 Topic 4 Discussion

CIMA F2 Advanced Financial Reporting F2 Question # 39 Topic 4 Discussion

F2 Exam Topic 4 Question 39 Discussion:
Question #: 39
Topic #: 4

Which of the following actions should XY's management take in order to reduce its investment in working capital?


A.

Sell its long-term investments and use the proceeds to reduce its bank overdraft.


B.

Extend credit terms with its trade customers.


C.

Scrap its obsolete inventory and replace with new inventory.


D.

Pay trade suppliers more quickly to take advantage of prompt payment discounts.


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