0452.6.2.02 — make recommendations and suggestions for improving profitability and working capital: past paper questions
Real questions on 0452.6.2.02 — make recommendations and suggestions for improving profitability and working capital
The newest 10 of 10 written questions. Open one to see it on the real paper.
- 0452/02 · Specimen 2027 · Q3d[5]
Abadi whether he should change to the new supplier of raw materials. Justify your answer by providing two arguments for and two arguments against changing suppliers.
See it on the paper → - 0452/22 · February/March 2026 · Q5d[5]
Advise the directors whether they should offer trade receivables 10% cash discount. Justify your answer by providing points for and points against the proposal.
See it on the paper → - 0452/23 · October/November 2024 · Q5c[5]
Advise G Limited whether to employ the consultant to review their credit control policy. Justify your answer with two advantages and two disadvantages.
See it on the paper → - 0452/21 · May/June 2021 · Q5b(ii)[2]
Suggest two reasons for the difference in the trade payables turnover of the two businesses.
See it on the paper → - 0452/22 · February/March 2021 · Q4c[5]
Advise Chaaya whether she should start to make cash sales only and offer the trade discount. Justify your answer by providing two advantages and two disadvantages.
See it on the paper → - 0452/23 · October/November 2020 · Q5d[5]
Advise Nazim whether or not he should introduce this strict credit control policy. Justify your answer by providing two advantages and two disadvantages.
See it on the paper → - 0452/23 · May/June 2020 · Q5c[5]
Advise the directors whether they should introduce the cash discount policy or the interest charge policy. Justify your answer by providing one advantage and one disadvantage of each policy. The information in the accounting statements is affected by the company’s accounting policies. REQUIRED
See it on the paper → - 0452/22 · February/March 2020 · Q3d[4]
Advise the partners whether or not they should make this transfer. Justify your answer by providing advantages and disadvantages.
See it on the paper → - 0452/22 · February/March 2020 · Q5b[5]
Advise Adit whether or not he should delay paying trade payables in order to reduce the bank overdraft. Justify your answer by considering the effect on both the bank balance and the trade payables.
See it on the paper → - 0452/22 · February/March 2020 · Q5c[3]
Suggest three other actions which Adit could take to reduce the bank overdraft.
See it on the paper →
What examiners said
Comprehensive responses • The advantages and disadvantages to the company providing cash discounts to its credit customers for a limited period were discussed in a logical manner. • There was a clear statement advising the trader on what action the company should take. Limited responses • Candidates made generic statements and did not relate them to the given scenario. For example, ‘profit will c...
— Examiner report, February/March 2026, 0452/22 Q5(d) (Cambridge)
Ratios for a rival business were provided and candidates were required to suggest why the trader’s trade receivables turnover and trade payables turnover were different to those of a rival business. There were some suitable suggestions, but many candidates were unable to provide appropriate reasons. Common errors included – • Making generic statements without reference to the two named traders. •...
— Examiner report, May/June 2021, 0452/21 Q5(b) (Cambridge)
Candidates were required to advise a trader on whether to make cash sales only (with a trade discount to regular customers) or to continue selling on credit terms. Most candidates were able to earn at least half of the available marks. Many candidates correctly explained the consequences of trading in cash only. Some candidates did not make a recommendation of which option the trader should select...
— Examiner report, February/March 2021, 0452/22 Q4(c) (Cambridge)
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