Exam L4M2 Topic 2 Question 114 Discussion
Actual exam question for CIPS's L4M2 exam
Question #: 114
Topic #: 2
Question #: 114
Topic #: 2
Which of the following positively affects a buyer's company cash flow? Select TWO that apply:
Suggested Answer: A,D Vote an answer
Detailed Explanation:
A (Customer payment upon purchase): Immediate payments improve cash flow.
D (Loan): Loans provide cash inflow, though they may increase liabilities.Options like supplier payment on receipt (C) negatively impact cash flow, and sales promotions (B) may increase expenses. Reference: CIPS Level 4, Financial Management in Procurement.
A (Customer payment upon purchase): Immediate payments improve cash flow.
D (Loan): Loans provide cash inflow, though they may increase liabilities.Options like supplier payment on receipt (C) negatively impact cash flow, and sales promotions (B) may increase expenses. Reference: CIPS Level 4, Financial Management in Procurement.
by Madeline at Jul 16, 2026, 05:33 AM
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