Cash Management Exam Help

Daisyduck1 Registered Posts: 5 Regular contributor ⭐ 😼 ⭐

I have twice failed Cash Management.There is one question which I am stuck on and wonder if anybody else has come across it?

I think it was number 1.6. - Preparing a Cash Budget to anticipate financing requirements
It was a long question and once the exam is over its hard to remember the details but these are are the bits I do remember.

The figures required for the answers are in boxes which you drag and drop.

The question was about a Car garage owner called Sue, You are asked to fill in a cash budget for July, The company offered Credit terms to a Taxi Compay called Inzy on 35 days credit. You also had to fill in payments.

The trouble I had was that none of the amounts available to drag and drop didn't match my calculations and I just don't know what i was doing wrong!!!!

Has anybody has this question, any help would be Great.


  • Jo Clark
    Jo Clark Registered Posts: 2,525

    Have you looked at the practice papers for this module?

    Without knowing the actual question I am unable to help you any further. All questions in the CBAs, as you are probably aware, are unique to each student so no exam should be the same.

    Have a look at the practice papers and let us know if you struggle with the equivalent question on these, we may be able to help you then.

    JC :o
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • Daisyduck1
    Daisyduck1 Registered Posts: 5 Regular contributor ⭐ 😼 ⭐
    Hi Jo,
    Thank you very much for your reply.

    I have completed all the practise papers and the practise papers in both the Osbourne and BPP books, I think I understand the subjct it was just that particular question. As I could only drag and drop the figures on offer I could not make them match mine. I only know of One other person to have this question and they couldn't do it either. I thought if I could contact somebody who had this question in thier exam they might remember something about it that I am missing, as I have had the same question both times I sat the exam I am worried it will come up again and I still won't know what I am doing wrong.
    Many thanks
  • liveprincess
    liveprincess Registered Posts: 214 🎆 🐘 🎆
    HI I'm sure I had this question in my exam. I remember it quite threw me but I don't really remember what had to be done. I remember that I wasn't sure at all about it so I did whatever I thought was the most reasonable-looking answer. I ended up exceeding every task so I must have done it right. If you can remember any more about this question it might help me remember what was the answer.. Sorry I can't help you any more.
  • Daisyduck1
    Daisyduck1 Registered Posts: 5 Regular contributor ⭐ 😼 ⭐

    The question was somthing like:

    Jo Marshell runs a repair garage, sales are 80% cash the remainder is credit to a compay called Inzy Taxies who have credit terms of 35 days. Sales for May are £12,000 June £13,500 and July £15,000. Complete the cash budget for July.

    The figures above are not those in the exam as I can't remember them exactly. I worked out 80% of July's figure for cash sales and 20% of May's figure (35 days credit) for the credit sales.
    The figures I worked out did match those on the drag and drop options. I don't think it was a hard question but none of my calculations were the same as the available options so I was at a loss. I must be missing something!!

    You had to fill out the rest of the budget with purchase info but i didn't get that far. I hope somebody remembers this question as it's driving me mad.
    Many thanks
  • liveprincess
    liveprincess Registered Posts: 214 🎆 🐘 🎆
    did you remember to add the cash received from cash sales in a month to money received from credit sales from the previous months? Also the 35 days credit terms- it somehow makes me think that she will only receive money from credit sales 2 months ago.. I wish you won't have this question again, it really is not worded very well and precisely
  • welshwizard
    welshwizard Registered Posts: 465
    I assume you realise that you're talking about a live assessment question?

    After they have sat assessments, I always have students asking me about specific questions that had 'something like...' in them. It is impossible to give you definitive answers here because if you miss out one small detail the answer can change completely. Your best bet is to go back to a text book and look for something similar (make sure that you check other publishers because there is a huge difference in detail and style of sample questions across BPP, Kaplan and Osborne).
  • liveprincess
    liveprincess Registered Posts: 214 🎆 🐘 🎆
    Hi Welshwizard, the OP does realise this, that's why they don't ask for a specific answer, just some guidance to help find out where they are going wrong. The question was directed to anybody who had this question in their live assesment and can shed some light on this. I would be doing the same if I failed an exam twice and had the same question which I did not meet. This assesment is very different to any mock ones or any practice questions I have ever come across in any book - that's why the OP won't find help with this in books.
  • Daisyduck1
    Daisyduck1 Registered Posts: 5 Regular contributor ⭐ 😼 ⭐
    Cash Management

    Thanks for your reply Welshwizard,

    I am not seeking a numerical answer to my question, liveprincess is correct when she says I wanted to contact somebody who had previously had this question as it is the wording I am confused about, maybe I should ask if anybody has ever seen a question where the credit customer has 35 days credit.

    I have completed all four papers on AAT, the Green light section and all the practise assessments in the Osbourne and BPP books I have also completed both text and question banks in both books all passed without any trouble. I will purchase and check Kaplan, nowhere have I seen a question even remotely like the one I had on the live assessment.

    As this question came up when I sat the exam the first time and I still couldn't do it when I saw it when had my re-sit my confidence crashed I panicked and failed again, my fear is that it will come up on my next re-sit and I still don't know how to answer it. I don't know where to go from here!!
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    The drag and drop boxes are a help as they effectively turn the question into multiple choice.

    My answer would have to make a series of assumptions which the list of multiple choice alternatives mean you do not have to make.

    May sales are made up of 80% cash and £2,400 on credit. These credit sales are £77.42 on average per day.
    If each customer takes the whole 35 days credit period the sales on 1st May will be received on June 5th etc.
    So the credit sales for 1st May to 26th May will be received in June. This leaves the credit sales for 27th May to 31st May. These will be received in July.

    June sales are similarly 80% cash. Credit sales are worth £2,700 (£90.00 on average per day). Credit sales from June 1st would be received on July 6th after 35 days credit, and this amount would continue to be received until August 4th.

    July sales are 80% cash £12,000

    My value for cash receipts in July would be:
    27th to 31st May average credit sales (i.e. 5 days x £77.42)
    1st to 26th June average credit sales (i.e. 26 days x £90.00)
    All the July cash sales (i.e. £12,000)

    A total around £14,727.10 (I used excel for the £77.42 so don't worry if our answers don't agree)

    The logic is sound, you can choose alternative assumptions, may be change the days may be treat Sundays as non trading days: that is up to you. You might even assume that the June credit sales are all received in July. What I hope this does is to answer the question you posed:
    The figures I worked out did match those on the drag and drop options. I don't think it was a hard question but none of my calculations were the same as the available options so I was at a loss. I must be missing something!!

    In terms of why you didn't pass the task on your second attempt I think your point:
    You had to fill out the rest of the budget with purchase info but i didn't get that far.
    might be more of a reason.
    [email protected]
  • StuartW
    StuartW Registered Posts: 472 Dedicated contributor 🌟 🐵 🌟
    Hi all,

    I'm going to need to remove this thread. As welshwizard points out, this is a conversation around a live assessment, which jeapordises the integrity of the qualification.

    Daisyduck1, I'd suggest you speak to your training provider/tutor if you need further help on Cash Management, and also use AAT's elearning support resources. You're welcome to ask users for help on concepts within the qualification, but we don't allow discussions around live assessment materials - I hope you can appreciate why.

    I'm going to be posting a link to AAT's online community terms and conditions in the Announcements section, which gives further guidance on what is/isn't allowed. I'd also appreciate the help of regular users, who can use the Report Post function to bring questionable content to our attention.


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