WORKING CAPITAL

Working capital =

• Current asstes -Current Liabilies

• Current Assets + Current Liabilities

• Current Assets/Current Liabilities

• Current Assets*Current Libilities

Current Assets means

• Assets which can be converted in to cash with in one year

• Assets used for long period

• Intangible Assets

• None

Below are all components of working capital except:

• cash

• Marketable securities

• Inventories

• Note Payable

Account receivable is

• Balance due from a customer

• Surplus paid by customer

• Amount payable to suppliers

• None

Inventories can be classified into

• Product, material, item

• Raw material, work in progress, and finished good

• Stationaries ,and other goods

• None

The cheapest source of finance is

• Equity Shares

• Preference Shares

• Retained Earnings

• Debentures

Net Woking capital refers to

• Total current Assets

• Current Asset + Current Liabilities

• Current Assets - Current Liabilities

• Current Liabilities - Current Assets

A fixed assets of business firm should be financed through :

• Long term liability

• Short term Liability

• A Mix of long term and short term liability

• A Mix of long term and short term liability None of the above

• Cash flow

• Business Activity

• Working capital cycle

• Liquidity cycle