Working Capital Management Quiz

What is a working capital?

• It is the capital used for running day-to-day operations.

• It is referred to as circulating capital.

• both

Working Capital Management is concerned with the problems that arise in attempting to manage the current assets, the current liabilities and the interrelations that exist between them.

• True

• False

It is the difference between operating current assets and operating current liabilities.

• Net Operating Working Capital

• Permanent/Fixed Working Capital

• Net Working Capital

Trade Receivables are expected to be released in cash within the normal operating cycle or one year.

• True

• False

________ is a part of the total assets of the company.

• current assets

• current liabilities

• working capital