Management of Current Assets and Liabilities

What are current assets?

• Obligations due within a year

• Fixed assets

• Assets expected to be converted into cash within a year

• Long-term investments

Which of the following is NOT a type of inventory?

• Raw materials

• Marketable securities

• Work-in-progress

• Finished goods

What does EOQ stand for in inventory management?

• Estimated Order Quantity

• Essential Order Quantity

• Effective Order Quantity

• Economic Order Quantity

What is the primary objective of accounts receivable management?

• To reduce supplier costs

• To increase inventory levels

• To enhance cash reserves

• To optimize cash flow and minimize bad debts

Which strategy is used in cash management?

• Inventory Valuation

• Market Analysis

• Supplier Negotiation

• Cash Budgeting

What are marketable securities?

• Short-term, highly liquid investments

• Long-term investments

• Real estate holdings

• Fixed assets

What is a key strategy in accounts payable management?

• Supplier Negotiation

• Cash Budgeting

• Inventory Management

• Market Analysis

What is commercial paper?

• A long-term loan

• Short-term, unsecured promissory notes

• A government bond

• A type of equity financing

What is the purpose of an accounts receivable loan?

• To improve cash flow by borrowing against invoices

• To finance long-term projects

• To purchase fixed assets

• To pay off existing debts

What is the objective of inventory loans?

• To maintain inventory levels without tying up cash

• To increase cash reserves

• To reduce supplier costs

• To enhance credit ratings