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Factors Affecting Working Capital Requirement - Topic 3

Total questions: 22

Worksheet time: 14mins

Name
Class
Date
1.

Select the correct option.

The sum of all _______is gross working capital.

a)

expenses

b)

current assets

c)

current liabilities

2.

Select the correct option.

Working capital can also be called as ________ capital.

a)

circular

b)

floating

c)

circulating

3.

Select the correct option.

If volume of sales increases, there is an increase in the amount of ______capital.

a)

working

b)

fixed

c)

both

4.

Select the correct option.

If manufacturing cycle is short, it required less ________capital.

a)

fixed

b)

working

c)

both

5.

Select the correct option.

During recession, sales will decline and hence the need of _______capital also decline.

a)

fixed

b)

both

c)

working

6.

Give a word or a term or a phrase.

The sum of current assets.

(a)  

7.

 

Give a word or a term or a phrase.

The excess of current assets over current liabilities.

(a)  

8.

Give a word or a term or a phrase.

The process of converting raw material into finished goods.

(a)  

9.

State whether true or false.

Working capital stays in the business almost permanently.

a)
b)
10.

State whether true or false.

The business dealing in luxurious products will require huge amount of working capital.

a)
b)
11.

State whether true or false.

A firm with large scale operations will require more working capital.

a)
b)
12.

State whether true or false.

Liberal credit policy creates a problem of bad debts.

a)
b)
13.

State whether true or false.

Financial institutions and banks cater to the working capital requirement of business.

a)
b)
14.

State whether true or false.

Trading firms which are concerned with distribution of goods need large amount of working capital.

a)
b)
15.

State whether true or false.

A firm with small scale operations require more working capital.

a)
b)
16.

State whether true or false.

The working capital requirement of a firm will decrease with growth of a firm.

a)
b)
17.

Find the odd one.

Land and Building, Plant and Machinery, Cash

a)

Land and Building

b)

Plant and Machinery

c)

Cash

18.

Find the odd one.

Purchases, Survey, Market analysis

a)

Purchases

b)

Survey

c)

Market analysis

19.

Complete the sentence.

When there is boom in economy, sales will (a)   .

20.

Complete the sentence.

The process of converting raw material into finished goods is called (a)   .

21.

Complete the sentence.

During recession period sales will (a)   .

22.

Select the correct option.

_________refers to the excess of current assets over current liabilities.

a)

Working capital

b)

Paid–up capital

c)

Subscribed capital