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Working capital

Authored by Pali Gaur

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Professional Development

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Working capital
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8 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

On The basis of ______,working capital may be classified as:

1)Permanent or Fixed Working Capital

2)Temporary or Variable Working Capital

Concept

Time

Future

Work

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In finance, "working capital" means the same thing as

Total Assets.

Fixed Assets.

Current Assets.

Current Assets minus Current Liabilities.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following would be consistent with a more aggressive approach to financing working capital?

Financing short-term needs with short-term funds.

Financing permanent inventory buildup with long-term debt.

Financing seasonal needs with short-term funds.

Financing some long-term needs with short-term funds.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Spontaneous financing includes

Accounts Receivable

Accounts Payable

Short-Term Loans

A Line of Credit

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Net working capital refers to

total assets minus fixed assets.

current assets minus current liabilities.

current assets minus inventories.

current assets.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

At the breakeven point:

Profit is $0

Fixed Cost + Variable Cost = Sales

Fixed Cost = Contribution Margin

All The Given Choices

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Contribution margin ratio is:

Total Contribution Margin / Sales

Sales / Contribution Margin per unit

Fixed Cost / Contribution margin per unit

Sales / Variable costs

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