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You work in the finance department of an entity. A director has approached you and asked you to falsify sales invoices which would significantly inflate revenue. The CIMA Code of Ethics suggests that you should deal with such an ethical dilemma by following a number of stages.

Place each of the stages identified below into chronological order.

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Question 2

Which of the following is correct?

The primary purpose of a cash budget prepared on a monthly basis is to determine:

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next month's sales volumes.

the amount of inventory to purchase in the following month.

when to pay employees salaries.

whether there will be sufficient cash in the bank to meet requirements.

Question 3

A conservative policy for financing working capital is one where short-term finance is used to fund:

Options:

All of the fluctuating current assets and part of the permanent current assets.

Part of the fluctuating current assets, but no part of the permanent current assets.

All of the fluctuating current assets, but no part of the permanent current assets.

Part of the fluctuating current assets and part of the permanent current assets.

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