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CIMA F1 · Operational Level

D. Managing cash and working capital

Section D covers the management of cash and working capital, including the operating cycle, receivables, payables, inventory management, and cash flow optimisation strategies to maintain liquidity and operational efficiency. This section equips you with practical analytical skills to assess and improve the short-term financial health of organisations.

  • 11 lessons
  • 3 modules
  • 1.5h of video
  • ~25% of the exam
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What you'll learn

By the end of D. Managing cash and working capital.

  • Explain the operating cycle and its impact on working capital requirements
  • Identify and analyse the components of working capital: receivables, payables, and inventory
  • Apply working capital management techniques to optimise cash flow and liquidity
  • Evaluate the trade-offs between profitability and liquidity in managing receivables and payables
  • Analyse inventory management strategies and their effect on cash position
  • Assess cash management tools and forecasting methods to support operational efficiency

The lessons

11 lessons, module by module.

Working Capital and the Operating Cycle

4 lessons
  1. 1 Working capital and the operating cycle - part 1 9m
  2. 2 Working capital and the operating cycle - part 2 7m
  3. 3 Working capital and the operating cycle - part 3 8m
  4. 4 Working capital and the operating cycle - part 4 7m

Receivables, Payables and Inventory

4 lessons
  1. 1 Receivables, payables and inventory - part 1 13m
  2. 2 Receivables, payables and inventory - part 2 7m
  3. 3 Receivables, payables and inventory - part 3 9m
  4. 4 Receivables, payables and inventory - part 4 8m

Managing Cash

3 lessons
  1. 1 Managing cash - part 1 9m
  2. 2 Managing cash - part 2 5m
  3. 3 Managing cash - part 3 7m

Questions

About D. Managing cash and working capital.

What does the Managing cash and working capital section cover?

Section D covers the management of cash and working capital, including analysis of the operating cycle, management of receivables and payables, inventory control, and cash flow optimisation. The section equips you with practical skills to analyse and improve short-term financial health within organisations, ensuring adequate liquidity while supporting operational efficiency.

Is this section important for the F1 exam?

Yes, Section D is a core component of the CIMA F1 Objective Test syllabus. Working capital management, the operating cycle, and cash management are frequently tested topics that account for a significant proportion of the exam, making mastery of these concepts essential for successful performance.

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