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3.7 - Working Capital - Quiz 3

Authored by Jonathan Lorence

Business

9th - 12th Grade

Used 364+ times

3.7 - Working Capital - Quiz 3
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17 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT true of working capital?

It is the amount of capital the firm has available to pay for its operations

The amount of money a firm has to spend in the short term

It is a measure of the firm's liquidity

It is the sum total of a firm's fixed assets

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is the correct formula for working capital?

current liabilities - fixed assets

current assets - current liabilities

costs - revenue

current liabilities - revenue

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

What does this represent?

Working Capital Cycle

Business Activity

Profit and Loss

Finance Processes

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The _________________ the amount of time between buying materials (inputs) to receiving payments from the customer the higher the risk to a firm.

Longer

Shorter

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Sufficient working capital is needed to prevent a business from becoming insolvent.

True

False

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Anyone who has bought from a business without payment (buying on credit) is known as a _____________.

Debtor

Creditor

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

"Current liabilities" are debts that have to be paid ________

in the next 12 months

in the next 5 years or more

in order to buy a current asset

to buy more working capital

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