Cima edusum cima Certificate Changed Ba3 Questions by Atlas q118 vce pdf

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Exam Name:	Fundamentals of financial accounting
Exam Code:	BA3 Dumps
Vendor:	CIMA	Certification:	CIMA Certificate
Questions:	393 Q&A's	Shared By:	atlas

Question 32

A company has receivables of $60,000, which represents 60 payables days, and payables of $45,000, which represents 45 payables days.

What would be the effect on cash, if receivable days and payables days were reduced to 55 days and 40 days respectively?

Options:

An increase of $10,000

A reduction of $10,000

An increase of $5,000

No effect

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Question 33

Accounting standards are used to produce the financial statements of all business entities.

Which ONE of the following best describes why accounting standards are needed?

Options:

To provide information for tax purposes

To provide information required by law

To provide information that fairly represents the performance and position of the entity

To provide information for shareholders