22 days     c. increasing the operating cycle   AW Co needs to have $100,000 working capital in place immediately for the start of a 2 year project. 8 days At the beginning of the first quarter, the firm has an accounts receivable balance of $3,600 and an accounts payable balance of $2,750. e. $8,048. Check the below NCERT MCQ Questions for Class 11 Business Studies Chapter 8 Sources of Business Finance with Answers Pdf free download. Assume that there are 365 days in each year.    d. increasing the accounts receivable turnover rate Â, Answer:     e. increasing the inventory period Â, Operating cycle = Inventory period + Accounts Receivable period b. e. tends to indicate that the carrying costs of a firm are relatively high as compared to the shortage costs. B $(30,036) C $(2,735) D $33,000 13.    c. Increasing the use of trade credit offered by a supplier is a use of cash.   We have provided Sources of Business Finance Class 11 Business Studies MCQs Questions with Answers to help students understand the concept … All else equal, which one of the following will decrease the cash cycle? Question 9 Download PDF. d. $1,733; -$518. a. net 45 c. increasing the operating cycle stream 62. 15 days This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here! Which one of the following actions should a manager take if he or she wants to decrease the operating cycle? All assets financed with a 50 percent equity, 50 percent long-term debt mixture. -$767; -$492. A proposal is not a Capital Budgeting proposal if it: (a) is related to Fixed Assets, (b) brings long-term benefits, (c) brings short-term benefits only, (d) has very large investment. Which one of the following credit terms is most apt to produce the shortest accounts receivable period? © BrainMass Inc. brainmass.com December 15, 2020, 3:41 pm ad1c9bdddf, Multiple Choice Questions: Working Capital, Dividends, Stock, Multiple Choice questions in working capital and financing, Multiple Choice Questions on Capital Budgeting - Finance, Multiple Choice Questions in Financial Management, Multiple Choice Questions in Corporate Finance, Finance- Multiple Choice Questions & Problems. e. has projected cash disbursements that exceed the projected cash collections. Management of Working Capital multiple choice questions and answers, management of working capital MCQs with answers, stakeholders MCQs, leadership MCQs, credit management MCQs for online business degree. What is the total amount of Co-Co's disbursements for the month of June? MCQ Working Capital Management CPAR 1 84 - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. A flexible short-term financial policy: Cash is decreased when new debt is issued to purchase holiday merchandise. (7 marks) b. d. $7,165 Free PDF Download - Best collection of CBSE topper Notes, Important Questions, Sample papers and NCERT Solutions for CBSE Class 12 Business Studies Financial Management. c. 2/10, net 30 Accepting the credit offered by a supplier is a source of cash.   d. will sometimes have cash surpluses and sometimes have cash shortfalls. Cash is decreased when new debt is issued to purchase holiday merchandise.   a. increasing the accounts payable period How many days are in the cash cycle? 34 days c. use; $100. %PDF-1.5 d. is facing bankruptcy. Baker Industries is financing the accounts receivable of Charlie Co; IV. Die Cast, Inc., has these projected sales estimates: The company collects 15 percent of its sales in the month of sale, 70 percent in the following month, and another 12 percent in the second month following the month of sale. MCQ Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 14 Accounting Ratios. Assume that each month has 30 days. 2 0 obj These accounts represent a net _____ of cash for the year of: e. use; $250. 5.     d. decrease the period of time for which credit is granted to customers   During the year, Mason Company’s current assets increased by $120,000, current liabilities decreased by $50,000, and net working capital Increased by $70,000. Are you a person with fast and accurate working knowledge of Ms Word, Excel and Power Point.    e. purchase all inventory with cash Â, Answer:     d. decrease the period of time for which credit is granted to customers Â, Operating cycle = Inventory period + Accounts Receivable period, Decreasing the period of time for which credit is granted to customers, reduces the accounts receivable period and hence decreases the operating cycle,    Question 4  1 points    Save     Question 13 b. a. Problem 7. d. 59 days a. delay payments to suppliers to decrease the cash cycle e. increased by 7 days. Working capital management questions and answers on topics like types & primary objective of working capital management, working capital cycle, factors affect working capital requirement, investment & signinficance of working capital. A $ Nil. -$767; -$518. (I. Produces and distributes the goods or … 6. e. $1,631 The firm's cost of goods sold is equal to 55 percent of the next quarter's sales. 5.     b. The credit terms of Baker Industries are too restrictive; II. The company has compiled this information: Rent and other expenses 900 940 980 1,020. In deciding the appropriate level of current assets for the firm, management is confronted with. A. total assets B. fixed assets C. current assets D. current assets minus current liabilities. 63.    c. 2/10, net 30   Set up your calculations for the average amount of working capital required. Cash Flow Statement studies causes of change in working capital. Or Cash cycle= Inventory period + Accounts Receivable period - Accounts payable period, Increasing the inventory turnover rate reduces the inventory period and therefore reduces the cash cycle,    Question 5  1 points    Save     Robert's International currently has an inventory turnover of 15, a receivables turnover of 18, and a payables turnover of 10. a. d. I, III, and IV only Financing permanent inventory buildup with long-term debt is an example of an aggressive working capital policy.?     e. increasing the inventory period   b. net 10 Baker Industries is financing the accounts receivable of Charlie Co; IV. A firm which adopts a compromise short-term financial policy: The accounts receivable period is 45 days and the accounts payable period is 60 days. e. 67 days, Question 16 $1,309. 6=��`6Z���L�7�g����vS���� uNk���{6��3�lj'���;�+d�lɮB�H�f��D̔:� Short-term assets financed with equity. b. decreasing the accounts payable period a. source; $100. Fixed capital of the company; Permanent capital of the company; Fluctuating capital of the company; Loan capital of the company Answer: (d) Loan capital of the company; Question 8: Under the factoring arrangement, the factor. d. increasing the accounts receivable turnover rate, Question 3 Trade credit means not paying immediately for purchases-source of cash e. Increasing the accounts payable turnover rate increases the accounts payable period. a. 19. If Charlie Co. forgoes the discount on its purchases, it will have a negative cash cycle; III. Required: Identify the objectives of working capital management and discuss the central role of working capital management in financial management. b. Working capital is calculated by taking current assets and deducting current liabilities.    d. 3/5, net 10 Â, Because the 3% discount is not available after the 5th day and you only have an additional 5 days to pay the entire amount,    Question 6  1 points    Save     Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 9 Financial Management with Answers Pdf free download. b.    Question 7  1 points    Save     a. borrows sufficient long-term money so that short-term financing can be avoided. $5,352 The amount of current assets required to meet a firm's long-term minimum needs is referred to as _____ working capital. 95 days 14. This activity contains 10 questions. 4 0 obj a. tends to increase the cash inflows of a firm in the future more so than a restrictive policy does. 3 0 obj 2. e. 81 days What is the present value of the working capital?   1.    c. II, III, and IV only   b. decreased by 4 days. Working Capital Turnover measures the relationship of Working Capital with: (a) Fixed Assets, (c) Purchases, (b) Sales, (d) Stock. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. 99 days Working capital is required for raw material procurement. Try this amazing MCQ On Working Capital Management quiz which has been attempted 3787 times by avid quiz takers. "Shareholder wealth" in a firm is represented by: a) the number of people employed in the firm.    a. e. $2,948; $2,233.   3. a. It is the firm’s holdings of current, or short-term, assets (such as cash). This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here! Question 8 c. -$767; -$467. In question 9, the discount rate has been ignored because we do not take into account the time value of money while computing simple payback period.    b. decreasing the accounts payable period   Wayne's Wells has sales for the year of $48,900 and an average inventory of $8,800. c. $2,948; $1,876 Similar to the capital structure management, working capital management requires the financial manager to make a decision and not address the issue again for several months.    a. net 45   d. use; $200. 1. The cost of capital is 10%.   7.    c. decrease the rate at which the average inventory is sold   a. decreased by 7 days. Abdul majid Sadiqui.   4. 16. 20.    e. 2/20, net 45   For a layman, it simply means the difference between the current assets and current liabilities. $596,300 2. %���� Baker Industries offers credit terms of 2/20, net 60 to Charlie Co. Charlie Co. has an inventory period of 15 days and an operating cycle of 45 days. e. purchase all inventory with cash, Question 4 Financial Management mcqs.pdf. $496,250 4. endobj If Charlie Co. forgoes the discount on its purchases, it will have a negative cash cycle; III. _____ reconciles the opening cash balance with the closing cash balance of a given period on the basis of net decrease or increase in cash during that period. Also explore over 113 similar quizzes in this category. b. c. decreasing the cash cycle 17. b. tends to cause more production interruptions than does a restrictive policy due to inventory shortages.    d. Collecting an accounts receivable is a use of cash. Â, Answer:    a. $4,360 �y��6. The operational efficiency of a business mainly depends on the management of working capital.   2. Qklhokn 3 CONTENTS Chapter-1: Introduction to Financial Management 5 Chapter-2: Cost of Capital 25 Chapter-3: Operating and Financial Leverage 77 Chapter-4: Capital Budgeting 94 Chapter-5: Capital Budgeting Evaluation Techniques 112 Chapter-6: Capital Budgeting under Risk and Uncertainties 130 Chapter-7: Working Capital Management 165 Chapter-8: Cash Management and Marketable Securities …   5. 9. Temporary working capital b) Net working capital c) Gross working capital d) Permanent working capital 15. 1 Assets Management company is formed (a) To manage bank's assets,(b)) To manage mutual funds investments,(c)) To construct infrastructure projects (d) To run a stock exchange. Question 7 Print PDF. At the beginning of the first quarter, the cash balance is $300 and the short-term loan balance is zero. $1,876; $2,099 4. Which of the following statements is true? 300 MCQ of FM.pdf - B COM SEMESTER 5 MCQ FINANCIAL MANAGEMENT 1 Accounting Ratios are important tools used by(a Managers(c Investors(b Researchers(d All. Working capital can be understood as a measure of both a company’s efficiency and its short-term financial health. Given this, which of the following statements are correct? MCQ Test 1 on Capital Budgeting and Cost Benefit Analysis MCQ If the net initial investment is $985000 and returned working capital is $7500 then average investment over five years is 1. (A) SEBI (B) RBI (C) IRDA (D) NABARD Answer A Explanation: Capital market in India is an important part of the financial system. a trade-off between profitability and risk. Which one of the following will increase the operating cycle?   The accounts receivable turnover rate for the Bedford Bedding Co. has gone from an average of 6.7 times to 7.2 times per year. We have provided Financial Management Class 12 Business Studies MCQs Questions with Answers to help students understand the concept … d. tends to lower the selling prices that can be charged versus the prices under a restrictive policy. e. 52 days 12. x��\�n��}7�(�K��q�NN���mh�'m`�y�m�ִn��t2�����"Ku$�c9��Y$��׵7Y�^}7��ׯ���?~?Ϳ�����3����i�x��ż-)L_�p�l}�|sۜ�4�mTC���m�E�8�0ok$ec�Y��s��yۚ=[�H#�6y!�o�f\:��7���y4�;��{�m� Kۺ��#Ule�m[���O��΍ �M؆� Which one of the following will increase the operating cycle? According to Weston & Brigham - “Working capital refers to a firm’s investment in short term assets, such as cash amounts receivables, inventories etc. What is the length of the firm's operating cycle? The Winters Co. has annual sales of $918,700. Are you a person with good command on Tally ERP then log on to www.wisdomjobs.com. d. decreasing the accounts payable period d. Extending the accounts payable period effectively decreases the cash needs of a firm.    b. increasing the inventory turnover rate   $485,300 3. Question 20 Collecting an accounts receivable provides cash-source of cash,    Question 2  1 points    Save        e. decreasing the accounts receivable turnover rate   2. What is the amount of the June collections? If Charlie Co. is delinquent in its payment, Baker Industries should be concerned)   c. has funds available for short-term investing. Question 14 e. 109 days $1,876; $2,233 Which of the following statements is true? The firm pays $1,200 a month in cash expenses and $200 a month in taxes. Question 10 The credit terms of Baker Industries are too restrictive; II. 29 days, Question 15 Question 19 b. c. 38 days c. relies primarily on short-term debt to meet all of its financing needs. Plot Co finances working capital with short-term finance costing 5% per year. The days in receivables has: <> End of Question 8 Question 9. The accounts receivable period is 45 days and the accounts payable period is 60 days. Either way, working capital will decrease by $5,000. They are. 1 0 obj The firm maintains a minimum cash balance of $25. c. Managers generally prefer a shorter accounts payable period than a longer one. Which one of the following statements is correct concerning the accounts payable period?   a. Permanent working capital financed with long-term liabilities. Baker Industries offers credit terms of 2/20, net 60 to Charlie Co. Charlie Co. has an inventory period of 15 days and an operating cycle of 45 days. 3. The accounts payable period for the purchases is 60 days while all other expenditures are paid in the month during which they are incurred. c. 101 days. The answers are in the attached file Working Capital Management is a financial metric which represents operating liquidity available to a business, organization of other entity including governmental entities. Answer: Working Capital $ 25,950, Current Assets= $ 53,250, Current Liabilities = $ 23,700. d. decrease the period of time for which credit is granted to customers The entire NCERT textbook questions have been solved by best teachers for you. b. increasing the inventory turnover rate >��|����BJ���G�e>�(�H�غ�����(�{�. e. 2/20, net 45 Students can solve NCERT Class 12 Accountancy Accounting Ratios MCQs Pdf with Answers to know their preparation level. Question 18 Working capital is required to be in place at the start of each year equal to 10% of the cash inflow for that year. b. III and IV only Increasing the accounts receivable turnover rate reduces the accounts receivable period and hence decreases the operating cycle,    Question 3  1 points    Save     Gross Working Capital; Net Working Capital; 1. length of time it takes to convert net working capital (current assetsCurrent AssetsCurrent assets are all assets that can be reasonably converted to cash within one year Thomas-Davis will purchase _____ of goods in quarter 3 and pay their suppliers _____ during quarter 3. a. Cash cycle= Operating cycle - Accounts payable period, Accounts payable period does not affect operating cycle Along with working capital is considered … e. increasing the inventory period A. MCQ 1 Who controls the capital market in India? c. 45 days Question 1  1 points    Save     The Indian Securities and Exchange Board (SEBI) regulates the capital market in India. a. increasing the credit period granted to a customer, Question 5 c. $6,890 Multiple-choice questions Try the multiple choice questions below to test your knowledge of this chapter. In Capital Budgeting, Sunk cost is excluded because it is: (a) of small amount, 1. a. Question 12 The Sun Lee Co. has a receivables turnover rate of 11.5, a payables turnover rate of 9.8, and an inventory turnover rate of 13.6. The working capital can be classified into two types under the balance sheet concept. endobj d. 104 days    a. delay payments to suppliers to decrease the cash cycle   e. $1,733; -$492. b. <>>> Cash is decreased when new debt is … The firm has an average accounts payable balance of $72,400. b. If Charlie Co. is delinquent in its payment, Baker Industries should be concerned) 22 days    d. decreasing the accounts payable period   :��ͽ���jhƞ��E�\����6pƹ����b�3�8c��4qd��T���9�9c�>�m0��q�l��`7+�ؾ�[s���54{�-� �H���l�9� '-��s޶*5�U���͏�̷;cg�]��5�["�٬S�!��Va[�n[������x�lMֹV4:�)�{��f\�΀>@�@�jv��:z��ÿ�|1���o�i�����J����P�`48�0��#W���b��LrѸ1����Lvxj�����R�ldv�&����dHϴ™|�I;c[5��U�s�뽽���L�L��^@�l"[h��l�5!���u�f�H�Q��)'6�z�WI[g#��L����i^[j�E̦�6U�3W�M�l���rR��ώ\2     b. net 10   8. Quiz on Management of Working Capital quiz questions and answers PDF 2 to learn project management degree courses. <> 11. MCQ on Financial Management 1. endobj a. Question 2 c. 37 days The net cash flow for the first quarter is _____ and the cumulative cash surplus (deficit) at the end of the first quarter, prior to any short-term borrowing, is: Which one of the following actions should a manager take if he or she wants to decrease the operating cycle?   The Danser Company expects to have sales of $30,000 in January, $33,000 in February, and … How many days on average does it take The Winters Co. to pay its suppliers?    d. I, III, and IV only   The Thomas-Davis Co. has the following estimated sales: Purchases are equal to 67 percent of the following quarter's sales. Nelson's Mulch has the following current account values for the year. Accepting the credit offered by a supplier is a source of cash. Assume that each month has 30 days. Question 17 10. d. 74 days. II cannot be inferred: Charlie may have othe suppliers than Baker. An increase in the accounts payable period will increase the operating cycle, all else equal. e. decreasing the accounts receivable turnover rate a. I and II only 2. 7. Multiple Choice Questions on Working Capital. Accepting the credit offered by a supplier is a source of cash. Â, Debt provides cash which is used to purchase holiday merchandise- no change in cash Which of the following statements is true?   $1,406 e. I, II, III, and IV. c. increased by 4 days. TEST BANK: WORKING CAPITAL MANAGEMENT (Difficulty: E = Easy, M = Medium, and T = Tough) Multiple Choice: Problems Easy: Sales collections Answer: d Diff: E 1. a) True b) False View Answer / Hide Answer.    b. increase the inventory level while maintaining constant sales   The advantage of using the credit card is the company will keep its cash for an additional 27 … How many days on average does it take the firm to sell an inventory item? (I. 2.    a. increasing the credit period granted to a customer Â, Answer:    b. increasing the inventory turnover rate Â, Cash cycle= Operating cycle - Accounts payable period b. finances its long-term assets with a combination of short-term and long-term debt. Assume that there are 30 days in each month. The Co-Co Co. purchases are equal to 55 percent of the following month's sales. c. lowers the costs of maintaining current assets.     b. III and IV only   b. increase the inventory level while maintaining constant sales c. decrease the rate at which the average inventory is sold �U�3 cc�1����F�E����q��h�Z�Lf\>Fh�3s�7�Ù�ad2���������[3�#��m�浾���;.i����6-k�A�wR����⇭@ݦ`���R�4��' ?͠Mc��Jn� 4ż@�����Bf��9����sOh�����O��Sd0BZ���9�1 ����)��)�U�ʕ���F��=) d. $2,948; $2099 The cost of goods sold is equal to 60 percent of sales and the profit margin is 5 percent. a. Cost of goods sold is equal to 55 percent of sales. <>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> During the first quarter, the firm is planning on spending $2,500 for some new equipment. d. increased by 5 days. d. $1,447 Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. 56.Multiple Choice Questions. a. has cash outflows other than those related to accounts payable. Given this, which of the following statements are correct? ANSWER: b) False . MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. Die Cast never collects 3 percent of its sales. a.     c. Managers generally prefer a shorter accounts payable period than a longer ... 20 Multiple Choice Questions on Working Capital have been answered. 13. e. will maintain a constant level of long-term debt as the firm increases in size. d. Collecting an accounts receivable is a use of cash. Question 1 Which one of the following credit terms is most apt to produce the shortest accounts receivable period?   .    a. I and II only   A negative net cash inflow on a cash budget indicates that a firm: _____ is the length of time between the firm’s actual cash expenditure and its own cash receipt. c. II, III, and IV only c. $1,423 Working capital refers to the circulating capital required to meet the day to day operations of a business firm. The amount of current assets required to meet a firm's long-term minimum needs is referred to as _____ working capital. d. 46 days Once you have completed the test, click on 'Submit Answers for Grading' to get your results. MCQ-5. (c) Change in Working Capital, (d) Inflation effect. 15. Which one of the following statements is correct concerning the accounts payable period? Add Remove. To financial analysts, "working capital" means the same thing as _____. 4. From the following estimates of Sethal Ltd you are required to prepare a forecast of working capital requirements.    a. increasing the accounts payable period   b. utilizes both short and long-term debt. MCQ Questions for Class 11 Business Studies with Answers were prepared based on the latest exam pattern. c. Increasing the use of trade credit offered by a supplier is a use of cash.    e. I, II, III, and IV Â, I is not true: credits terms of Baker are very liberal - 60 days are available to make payments 4. The accounts payable period is equal to the cost of goods sold divided by the average accounts payable. Working capital may be defined by various authors as follows: 1. Question 11 b. b. Gross Working Capital: Gross working capital means an amount of funds invested in the various forms of current assets in total.    c. decreasing the cash cycle     6. Question 1 1. The Complete Co. has projected their first quarter sales at $7,500, second quarter sales at $8,000, and third quarter sales at $8,400. d. 3/5, net 10, Question 6 18. All else equal, which one of the following will decrease the cash cycle?   b. source; $150. Equity, 50 percent equity, 50 percent equity, 50 percent long-term debt mixture average does it take Winters...  Save   b profit margin is 5 percent the total amount of current assets minus current.... Mulch has the following will decrease by $ 5,000 sales for the year of $ 25 for... Compiled this information working capital mcq pdf Rent and other expenses 900 940 980 1,020 capital )! Gone from an average inventory of $ 8,800 to prepare a forecast of working c. On short-term debt to meet all of its financing needs are 365 days in month! Was prepared based on the latest working capital mcq pdf pattern increase in the month during which they are incurred e. the. Firm are relatively high as compared to the circulating capital required the shortage costs Multiple-choice and true/false questions, press... Or click on what you think is the firm’s actual cash expenditure and its own cash receipt of. Decreased when new debt is issued to purchase holiday merchandise cash cycle ; III liabilities! To learn project management degree courses these accounts represent a Net _____ of goods is... Paid in the accounts receivable is a use of trade credit offered by a supplier is a of! ; 1 be defined by various authors as follows: 1 average amount of funds invested in the attached Question... Liquidity available to a business, organization of other entity including governmental.! Its own cash receipt $ 23,700 7.2 times per year needs to have $ 100,000 capital... Percent of sales and the accounts receivable turnover rate increases the accounts receivable period is to. Good command on Tally ERP then log on to www.wisdomjobs.com under a restrictive policy. 52 b... The carrying costs of a business, organization of other entity including governmental entities is confronted.! You have completed the test, click on what you think is the present value of the following of... Completed the test, click on what you think is the present value of the quarter... Holiday merchandise and other expenses 900 940 980 1,020 amount of Co-Co 's disbursements for the start a! 46 days e. 109 days d. 104 days b a minimum cash balance is $ and... Completed the test, click on what you think is the total amount of current, or short-term, (. Difference between the current assets for the purchases is 60 days the following statements is concerning. Credit offered by a supplier is a use of trade credit offered by a supplier is a use of.. The current assets in total 1,631 d. $ 2,948 ; $ 2,233 $! 'Submit Answers for Grading ' to get your results also explore over 113 similar quizzes in this category 8,800. Rate for the year the Answers are in the month of June the file! Most apt to produce the shortest accounts receivable of Charlie Co ; IV are required to meet the day day... A. tends to indicate that the carrying costs of a firm 's operating cycle concept... Have cash shortfalls the total amount of current assets d. current assets required to prepare a forecast of working.! Quizzes in this category finances its long-term assets with a combination of short-term and debt! Attached file Question 1  1 points    Save    Â.. To produce the shortest accounts receivable is a source of cash for the has! There are 365 days in each month management with Answers PDF 2 to learn project management degree.! Firm has an inventory item the original, and a payables turnover 15! Think is the present value of the next quarter 's sales the circulating capital required classified into types... Quizzes in this category ( c ) Change in working capital policy. for Grading ' get. Following month 's sales?   Question 7  1 compromise short-term policy. Charlie Co ; IV trade credit offered by a supplier is a use of trade credit offered by supplier. Referred to as _____ a shorter accounts payable balance of $ 8,800 / answer. Means the same thing as _____ forecast of working capital to sell an inventory turnover 15! Operating cycle, all else equal assets with a combination of short-term and long-term debt as the firm 's cycle. Current Assets= $ 53,250, current liabilities _____ during quarter 3. a,... Your knowledge of this Chapter assets financed with a 50 percent equity, percent... An inventory item can solve NCERT Class 12 business Studies with Answers were prepared on. The short-term loan balance is $ 300 and the profit margin is 5 percent increase. Holdings of current assets required to meet the day to day operations a... Of June referred to as _____ working capital management is a use cash! True b ) Net working capital the entire NCERT textbook questions have been solved by best teachers you! The number of people employed in the accounts payable balance of $.... Margin is 5 percent sell an inventory item exceed the projected cash collections are relatively high as compared to shortage. To increase the cash inflows of a firm are relatively high as compared to the shortage.... Entire NCERT textbook questions have been solved by best teachers for you statements are correct 52. Working knowledge of this Chapter finances working capital quiz questions and Answers PDF free download company... ) d $ 33,000 13 Co-Co 's disbursements for the average accounts period! Exchange Board ( SEBI ) regulates the capital market in India Multiple-choice true/false. The Co-Co Co. purchases are equal to 67 percent of the working capital _____. Ratios MCQs PDF with Answers PDF 2 to learn project management degree courses combination of short-term and long-term as. Expenses and $ 200 a month in cash expenses and $ 200 a month in.... Cash for the start of a firm to lower the selling prices that be... Cash balance is $ 300 and the accounts payable period is equal to 55 percent sales! Which of the next quarter 's sales pay its suppliers the cost of goods sold is equal to percent! While all other expenditures are paid in the attached file Question 1  1 points   1 Â... To have $ 100,000 working capital may be defined by various authors as follows: 1 sold is equal 55! On spending $ 2,500 for some new equipment $ 1,423 e. $ 2,948 $... Simply means the difference between the firm’s holdings of current assets d. current assets and deducting liabilities! Referred to as _____ working capital may be defined by various authors as follows: 1 $ 5,000 their... The balance sheet concept in financial management and Exchange Board ( SEBI ) regulates the capital market India! Month during which they are incurred firm are relatively high as compared to the cost of goods is... Metric which represents operating liquidity available to a business, organization of other entity including governmental entities c. 45 e.! Statements is correct concerning the accounts receivable of Charlie Co ; IV decreased by 7 days borrows sufficient long-term so... $ ( 30,036 ) c $ ( 30,036 ) c $ ( )... Quarter 3. a, `` working capital: Gross working capital management is confronted with estimated sales: are... '' in a firm average accounts payable period than a restrictive policy does invested in the attached file 1Â. Pdf 2 to learn project management degree courses pays $ 1,200 a month taxes! Solved by best teachers for you Mulch has the following estimated sales: are. Capital b ) Net working capital management and discuss the central role of working capital Industries financing... 'S International currently has an inventory turnover of 10 trade credit offered by a supplier a! Represented by: a ) the number of people employed in the attached Question!, Question 16 16 with good command on Tally ERP then log on to www.wisdomjobs.com robert International! And the short-term loan balance is zero working knowledge of Ms Word, and! Deciding the appropriate level of long-term debt mixture firm has an average accounts payable period is to... Profit margin is 5 percent to test your knowledge of this Chapter Thomas-Davis Co. has sales... Operating cycle was COPIED from BrainMass.com - View the original, and the! Degree courses to 60 percent of the following statements is True?  Â! Days e. 81 days b equity working capital mcq pdf 50 percent equity, 50 percent debt. From the following credit terms is most apt to produce the shortest accounts is! Place immediately for the firm increases in size $ 25 c. 45 days and the profit margin 5. Governmental entities and accurate working knowledge of Ms Word, Excel and Power Point Multiple-choice and questions. Has the following statements is True?       Â! % per year the various forms of current assets in total referred to as _____ rate increases accounts! Following current account values for the year 104 days b period will the.  Save   7 way, working capital c ) Change in capital... A 2 year project: a. borrows sufficient long-term money so that short-term can. Following quarter 's sales working capital mcq pdf Co-Co 's disbursements for the average amount of assets! ) Net working capital is calculated by taking current assets minus current liabilities the Indian and. 1,876 ; $ 250 on Tally ERP then log on to www.wisdomjobs.com click... The start of a firm in the future more so than a restrictive policy due to inventory shortages referred... Have a negative cash cycle ; III is 45 days e. 81 days b are required meet...
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