management accounting 19/12/2023

Working Capital is the ______.

• Capital borrowed from the Banks.

• Difference between Current Assets and Current Liabilities.

• Difference between Current Assets and Fixed Assets.

• Cash and Bank Balance.

Liquid Ratio is equal to liquid assets divided by ______.

• Current Liabilities.

• Total Liabilities.

• Contingent Liabilities.

• Non-Current Liabilities.

Which of the following transactions will improve the Current Ratio?

• Purchase of Goods for Cash.

• Payment to Trade Payables.

• Credit purchase of Goods.

• Cash collected from Trade Receivables.

The ______ is a measure of liquidity that excludes generally the least liquid asset.

• Liquid ratio, Accounts receivable.

• Current ratio, inventory.

• Liquid ratio, inventory.

• Current ratio, Accounts receivable.

Two basic measures of liquidity are _____.

• Current ratio and Quick ratio.

• Gross Profit ratio and Operating ratio.

• Current ratio and Average collection period.

• Inventory turnover and Current ratio.