WorksheetsCash Management Test 2
Total questions: 20
Worksheet time: 11mins
True or False. A business that makes good profits will always have enough cash to meet its commitments?
(a)
Which of the following items do not appear as a payment in a cash budget?
payments of wages
payments to suppliers (Accounts Payable)
cash purchase of equipment
depreciation on equipment
During May, credit sales totalled $240 000. The business usually receives 80% of its debts in the first month after sale. How much cash is received in June from the credit sales in May?
$192,000
$48,000
$240,000
$190,000
True or False. The cash budget is an attempt to predict future events for the business?
True
False
Both
None of the above
When cash receipts exceed cash payments on the cash budget, the resultant cash position is referred to as a
shortage
profit
surplus
deficit
A cash budget is used to determine:
profit
cash closing balance
the value of the business
the debts of the business
Which of the following is component in cash receipt.
purchasing materials
Wages
dividend received
acquire fixed asset
All fixed assets and part of the permanent will be financed by long-term financing. The statement is best described for ______.
aggressive approach.
hedging approach.
preserve approach.
conservative approach.
Semi Annual Cash requirement is Rs.40,00,000. Transaction cost per conversion is Rs.1,000. Interest Rate is 12% p.a.
What should be the economic lot size as per William J Baumol?
4,00,000
40,00,000
365148
80,00,000
Current ratio is 1.50
Working Capital = Rs.5,00,000
Calculate the amount of Current Liabilities.
5,00,000
10,00,000
2,50,000
25,00,000
Stock of Raw Material = Rs.100; Stock of WIP = Rs.50; Stock of Finished Goods = Rs.150; Debtors = Rs.250; Creditors = Rs.100. What will be the amount of Working Capital?
50
100
250
450
Opening Balance of Cash is Rs.50,000. Cash Receipts during the month is Rs.20,000; Cash Payments during the month are Rs.5,000. What should be the Closing Balance of Cash?
65,000
45,000
50,000
20,000
While preparing Cash Budget, which of the following items would not be included -
Interest paid to debenture holders
Salaries & Wages
Bonus Shares Issued
Income tax paid
Working Capital will not change if there is:
Increase in Current Assets
Payment to Creditors
Decrease in Current Liabilities
Decrease in Current Assets
Wages for the month of January & February are Rs.20,000 & Rs.22,000 respectively. Delay in payment of wages is
1/2 month. The Amount of wages paid during the month of February is
11,000
22,000
20,000
21,000
A negative working capital means that -
the company has no current assets at all
the company currently is unable to meet its short term liabilities
the company has negative EBIT
the company currently is able to meet its short term liabilities.
