MCQ on Working Capital 1. Working capital is also known as excess of current assets over current liabilities Try this amazing MCQ On Working Capital Management quiz which has been attempted 7693 times by avid quiz takers. Also explore over 83 similar quizzes in this category working capital Multiple choice questions and answers, Important mcq of working capital, Solved mcqs for working capital, Download pdf for working capital solved mcqs, working capital mcq with answers pdf download. Topic wise solved MCQ's. Bachelor of Business Administration (BBA Working Capital MCQs? Net working capital is the difference between Current assets and current liabilities. likely be lower than under other business conditions in order that the company can maximize profits while minimizing working capital investment Above said Working Capital Management MCQ are helpful for students of various universities in India such as Pune University, Mumbai University, Anna University, and Calicut University. You'll also like Financial Management MCQ with Answers Tags: Financial Management MBA MCQ
The working capital financing policy that subjects the firm to the greatest risk of being unable to meet the firm's maturing obligations is the policy that finances; a. Fluctuating current assets with long-term debt. b. Permanent current assets with long-term debt. c. Permanent current assets with short-term debt. d a. for small companies, long-term debt is the principal source of external financing. B. current assets of the typical manufacturing firm account for over half of its total assets. c. strict adherence to the maturity matching approach to financing would call for all current assets to be financed solely with current liabilities. d. similar to the capital structure management, working capital.
Question 9. 9. A firm which adopts a compromise short-term financial policy: a. borrows sufficient long-term money so that short-term financing can be avoided. c. relies primarily on short-term debt to meet all of its financing needs. d. will sometimes have cash surpluses and sometimes have cash shortfalls Answer (A) is correct. Net working capital is the excess of current assets over current liabilities. An increase in current assets or a decrease in current liabilities will increase net working capital. Option 1 maximizes Mason Company s net working capital, increasing it by $170 ($120 + $50). Option 2 Working Capital and Liquidity (Practice Quiz) For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions press or click on the blank space provided Permanent working capital financed with long-term liabilities. Short-term assets financed with equity. All assets financed with a mixture of 50% equity and 50% long-term debt. End of Question 6. Question 7. In deciding the optimal level of current assets for the firm, management is confronted with __________
Working Capital Management d.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 24.The amount of current assets that varies with seasonal requirements is referred to as _____ working capital. a.permanent b.net c.temporary d. Permanent working capital financed with long-term liabilities. Short-term assets financed with equity. All assets financed with a 50 percent equity, 50 percent long-term debt mixture. 5. In deciding the appropriate level of current assets for the firm, management is confronted with. a trade-off between profitability and risk
MCQ on Financial Management Shareholder wealth in a firm is represented by: the number of people employed in the firm. the book value of the firm's assets less the book value of its liabilitie Companies may adopt an aggressive or a conservative working capital policy. An aggressive policy means that a company. The following are extracts from the income statement for the year ended 31 December 2009 and the balance sheet as at 31 December 2009. Assume that sales and cost of sales for the year 2008 were 10% below 2009 levels A. Having low amount of working capital B. High turnover of working capital C. Sales are less compared to assets employed. D. Low turnover of working capital. ANSWER: D 140. Cost of capital is the _____ rate of return expected by the investor. A. maximum. B. average. C. marginal. D. minimum. ANSWER: A 141 Check the below NCERT MCQ Questions for Class 9 Economics Chapter 1 The Story of Village Palampur with Answers Pdf free download. MCQ Questions for Class 9 Social Science with Answers were prepared based on the latest exam pattern. We have Provided The Story of Village Palampur Class 9 Economics MCQs Questions with Answers to help students understand the concept very well
. Physical capital (a) tools, machines, building which can be used in production over many years. 2. Fixed capital (b) raw materials and money in hand. 3. Working capital (c) standard unit of measuring land. 4. Hectare (d) growing more than one crop one a piece of land during the year. 5. Multiple croppin Working capital is the money used to cover all of a company's short-term expenses, including inventory, payments on short-term debt, and day-to-day expenses—called operating expenses. Working..
Working capital is a measure of both a company's efficiency and its short-term financial health . Working capital is calculated as Variable working capital is that portion of the total capital that is required over and above the fixed working capital. This working capital is required to meet the seasonal needs and some contingencies. The requirement of this type of working capital changes with the changes in the level of activity. Capital Gains Tax Interview Question Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 9 Financial Management with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Financial Management Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well Working capital is forecasted on the basis of opening cash and bank balances. Under this method, some of the items are added and some of the items are deducted to arrive closing cash and bank balances i.e. working capital. The items like depreciation, preliminary expenses written off, deferred revenue expenses, goodwill written off, reduction.
Working capital financing policy is concerned with the relative proportions of short-term and long-term finance used by a company. While working capital investment policy is therefore assessed on an inter-company comparative basis, assessment of working capital financing policy involves analysis of financial information for one company alone View answer. Correct answer: (A) a stable firm, with positive growth, under favorable economic conditions. 143. In designing working capital policy, the financial manager is concerned with yield curve and: dividend policy. balance of trade figures. the relative volatility of short and long term rates. the term structure of interest rates
Investment Management MCQ Questions and Answers Part - 3. 1. Investment is the ___________________. A. net additions made to the nations capital stocks. B. persons commitment to buy a flat or house. C. employment of funds on assets to earn returns. D. employment of funds on goods and services that are used in production process Buy MCQs Of Working Capital Management For MBA by Mr. Manish Agarwal PDF Online. Download Free Sample from Shanti Publications and Get Upto 24% OFF on MRP/Rental
F9. FM F9 Textbook. Tests. Test Centre. Exams. Exam Centre. Classroom Revision Mock Exam Buy $199. Syllabus C. Working Capital Management C1. The nature, elements and importance of working capital View mcq-working-capital-management-1-84.pdf from SBMA BSA at Divine Word College of Legazpi. MANAGEMENT ADVISORY SERVICES WORKING CAPITAL FINANCE THEORY 1. Compared to other firms in the industry, v) Increase in working capital is shown as an application and decrease in the working capital as a source in the funds flow statement. w) Funds flow statement must be accompanied by a statement of changes in working capital. Choose the correct answer: 1. Current assets include: a) Trade investments. b) Machinery
Working capital refers to the circulating capital required to meet the day to day operations of a business firm. Working capital may be defined by various authors as follows: 1. According to Weston & Brigham - Working capital refers to a firm's investment in short term assets, such as cash amounts receivables, inventories etc. 2 In finance, working capital means the same thing as current assets minus current liabilities. Working capital is the amount of cash a business can safely spend. It's commonly defined as current assets minus current liabilities MCQ Insufficient working capital may result into which combination of the following? I. Failures to adapt to changes. II. Enhancement in credit-worthiness of the firm. III. Reduced availability of trade and cash discounts. IV. Reduced volume of sales Multiple Choice Questions and Answers. 1. Capital budgeting is also known as: a) Investment decisions making b) Planning capital expenditure c) Both of the above d) None of the above. 2. Capital budgeting decisions are of: a) Long term nature b) Short term nature c) Both of the above d) None of the above. 3. Which of the following statement is not true for capital budgeting Working capital is a measure of both a company's operational efficiency and its short-term financial health. The working capital ratio (current assets/current liabilities), or current ratio, indicates whether a company has enough short-term assets to cover its short-term debt
What is the scope of working capital management mcq. MCQ on Working Capital 1.Working capital is also known as excess of current assets over current liabilities Strict adherence to the maturity matching approach to financing would call forall current assets to be financed solely with current liabilities. Similar to the capital structure management, working capital managementrequires the. The excess of current assets over current liabilities is called: August 1, 2021 by Alexa Mathews. A. Working Capital. B. Circulating capital. C. Fixed capital. D. Trading capital 6. The more short-term financing relative to long-term financing, the more risky the financial structure. Working Capital Management [by: Anik Ahmed, BBA (Major in Finance), JnU.] Page 7 of 8 Multiple Choice Questions: 1. Working capital management is primarily concerned with the management and financing of A) cash and inventory 1 The twin objectives of working capital management are profitability and liquidity. 2 A conservative approach to working capital investment will increase profitability. 3 Working capital management is a key factor in a company's long-term success. A. 1 and 2 only. B. 1 and 3 only. C. 2 and 3 only. D. 1, 2 and 3. Reveal answer Formulae & tables
Answer the following MCQs - 12)Which of the following techniques does not take into account the time value of money? Select one: a. Net present value b. Internal rate of return c. Discounted Payback period d. Payback period 13)The amount of current assets that varies with seasonal requirements is referred to as _____ working capital MCQ Questions for Class 11 Business Studies: Ch 6 Social Responsibilities of Business and Business Ethics. Working capital (b) Fixed capital (c) Lease financing (d) Retained earnings (a) Working capital. 15. It includes the behavior of the firm expected by the society but not codified by law. Identify the category of social responsibility.
FM (F9) ACCA Mock Exam 2021 MCQs. Welcome to the Financial Management FM (previously F9) Mock Exam. The FM mock contains 20 MCQs. Make sure you complete the mock under exam conditions to better prepare for your FM exam. A Litle request: Creating content takes time. You can show your gratitude by sharing the FM mock with relevant students Which of the following would not be financed from working capital? Which of the following is not a character constant? What are linked lists best suited? How many boxes of Staples can be sold if one box sell for 0.60 $? What are the four main areas of finance We have compiled the NCERT MCQ Questions for Class 9 Economics Chapter 1 The Story of Village Palampur with Answers Pdf free download covering the entire syllabus. Practice MCQ Questions for Class 9 Economics with Answers on a daily basis and score well in exams Financial Management Important Questions for CBSE Class 12 Fixed Capital and Working Capital. 1.Fixed Capital. The amount of capital investment in fixed assets is called fixed capital, e.g. plant and machinery, land and building, etc. 2.Factors Affecting Fixed Capital Requirement
3. Working Capital Turnover measures the relationship of Working Capital with: (a)Fixed Assets, (b)Sales,(c)Purchases,(d)Stock. 4. In Ratio Analysis, the term Capital Employed refers to: (a)Equity Share Capital, (b)Net worth, (c)Shareholders' Funds, (d)None of the above. 5. Dividend Payout Ratio is: (a)PAT Capital, (b)DPS EPS,(c) Pref. Dividend PAT, (d) Pref. Dividend Equity Dividend MCQ Questions for Class 9 Social Science with Answers were prepared based on the latest exam pattern. We have Provided The Story of Village Palampur Class 9 Economics MCQs Questions with Answers to help students understand the concept very well. working capital (d) all the above. Show Answer (c) working capital. Q.6 The factor's of. Residual theory of dividend is applicable only when: a. The cost of retained earnings lower than the cost of debt. b. the cost of retained earnings is higher than the cost of debt. c. the cost of retained earnings is equal to the cost of debt. 12. In approach, the capital structure decision is relevant to the valuation of the firm
These Class 9 MCQ Questions with answers will widen your skills and understand concepts in a better manner. MCQ Questions for Class 9 Economics Chapter 1 The Story of Village Palampur with answers. 1. Which of the following is fixed capital? (a) Tools and machines (b) Fertilisers and pesticides (c) Soil (d) Seeds (a) Tools and machines. 2 ANS: D. 2. The internal rate of return for a project can be determined. (a) If the internal rate of return is greater than the firm's cost of capital. (b) Only if the project cash flows are constant. (c) By finding the discount rate that yields a net present value of zero for the project Financial Management MCQ Quiz & Online Test: Read Financial Management MCQ questions, financial management mcq for ugc net that checks your basic knowledge of Financial Management abilities. This Financial Management Quiz & Online Test contains questions 40 multiple-choice questions. download financial management mcq with answers pdf CBSE Class 12 Accountancy Accounting Ratios MCQs Set C with answers available in Pdf for free download. The MCQ Questions for Class 12 Accountancy with answers have been prepared as per the latest 2021 syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE, NCERT and KVS. Multiple Choice Questions for important part of exams for Grade 12 Accountancy and if practiced.