Exam L4M4 Topic 1 Question 132 Discussion

Actual exam question for CIPS's L4M4 exam
Question #: 132
Topic #: 1
Which of the following financial documents would show whether a supplier has sufficient funds to pay their subcontractors in the short term?

Suggested Answer: D Vote an answer

A cash flow statement shows the money coming in and out. This would therefore show whether a supplier has enough money coming in, to be able to pay some of it out to a subcontractor.
P&L and Balance Sheets look more broadly at finances, rather than saying what's physically in the bank at a specific given time.
Do learn the difference between these three financial documents for the exam.
Balance Sheet: Explanation, Components, and Examples (investopedia.com) Profit and Loss Statement Meaning, Importance, Types, and Examples (investopedia.com) Cash Flow Statement: How to Read and Understand It (investopedia.com)

by Pamela at May 08, 2026, 10:34 AM

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