FoFM

Inventory can be classified as ____________.

• Permanent asset

• Temporary asset

• Permanent source

• Temporary source

• Spontaneous source

Machinery can be classified as ____________.

• Permanent asset

• Temporary asset

• Permanent source

• Temporary source

• Spontaneous source

Working capital management focuses on the current assets and long term liabilities that determine the liquidity.

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• 

Net working capital is the difference between current assets and current liabilities.

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• 

The longer the operating and cash cycle, the higher level of working capital required.

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• 

What does this represent?

• Cash flow

• Business Activity

• Working capital cycle

• Liquidity cycle

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

• Longer

• Shorter

• Medium

• None of these

Which of the following could be turned into cash the easiest or quickest?

• Raw materials

• Finished product

• Semi-finished product

• None of these

Net Woking capital refers to

• Total current Assets

• Current Asset + Current Liabilities

• Current Assets - Current Liabilities

• Current Liabilities - Current Assets

The basic objectives of Working Capital Management are :

• Optimum utilization of resources for profitability.

• To meet day to day current obligations

• Ensuring marginal return on current assets is always more than cost of capital

• Select any one of the above statement.