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Working Capital Short Quiz

Authored by Jaques Does Not Read

Life Skills

University

Used 1+ times

Working Capital Short Quiz
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10 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

  1. What is the main goal of working capital management?

To reduce employee costs

To reduce employee costs

To ensure a company can meet its short-term obligations

To increase marketing expenses

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is included in current assets?

Equipment

Accounts receivable

Land

Long-term investments

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Net Working Capital is calculated as:

Total Assets - Total Liabilities

Fixed Assets - Long-term Liabilities

Current Assets - Current Liabilities

Current Liabilities - Current Assets

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A positive working capital means a company has more current liabilities than current assets.

True

False

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What type of business usually needs higher working capital?

Online blog

Law firm

Retail store

Consultancy service

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following does not directly affect working capital?

Inventory levels

Interest rates

Credit policies

Accounts payable

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Efficient working capital management improves a company’s liquidity.

True

False

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