do you have to know the Capital cycle forumals for the Cash managment exam ?

kaplan says you dont need to know them but i do not trust them

there are three one for example:

Receivable days

Average collection period = receivables /credit sales * 365

i know you have to know the working capital cycle

Inventory Holding period + receivables - payables


  • Nps
    Nps Registered Posts: 782
    I can't remember if you specifically need them for that exam, but you may as well learn them, they are the easier formulas to learn, there are only 4 of them, and they crop up in a couple of later exams so you'll have to learn them eventually anyway!
  • janwal
    janwal Registered Posts: 1,189 Beyond epic contributor 🧙‍♂️
    Well our tutor did them with us this week so I'm going to learn just in case.
  • jollie32
    jollie32 Registered Posts: 4 New contributor 🐸
    I sat this last week and no you don't need to but you need to have knowledge of the working cycle.

    A word of warning is that we all commented on how unlike the practice assessments this exam is so be
    prepared for that as it makes you feel a bit out of your comfort zone! Sme even thought they were sitting the wrong exam!

    Just do your homework and you'll be fine- good luck :thumbup1:
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
    do you have to know the Working Capital Cycle formulas for the Cash managment exam ?

    [size=-2]I slightly changed your question to correct the spelling and add the word working [/size]
  • imtiaz
    imtiaz Registered Posts: 20 Dedicated contributor 🦉
    What jollie said is correct. You need to understand the working capital cycle, figures regarding inventory holding period etc will be given in the exam so you won't require knowledge of the formulas for the exam. However it's good to learn them anyway for better a understanding.
    I would agree slightly regarding this exam being tricky also. I remember getting past the first 3 questions and thinking 'oh **** I've underestimated this exam'. Truth is once I seen my results, it wasn't anymore difficult than i thought. Questions were just worded differently to what I had expected. My advice, just make sure you understand every topic before sitting it.
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