Quiz 2(Final Term)

This author define working capital as the firm's investment in short-term assets, cash, short-term securities, accounts receivables and inventories.

• a. Bonneville

• b. Weston & Brigham

• c. J.S. Mill

• d. Genestenberg

2. It is referred as the general concept which determines the working capital concept.

• a. Net Working Capital

• b. Gross Working Capital

• c. Component Working Capital

• d. Fixed Working Capital

3. The following belong to current assets except one.

• a. Prepaid Expenses

• b. Short-term Loans Advances

• c. Bills Receivable

• d. Outstanding Expenses

4. Seasonal working capital and special working capital belong to ____.

• a. Semi-variable Working Capital

• b. Temporary Working Capital

• c. Permanent Working Capital

6. Formula for computing finished goods stage.

• a. average stock of raw material/average raw material consumption per day

• b. ave. work in process inventory/ave. cost of production per day

• c. ave. finished stock inventory/ave. cost of goods sold per day

7. It refers to minimize risk by maintaining a higher level of working capital.

• a. moderate working capital policy

• b. aggressive working capital policy

• c. conservative working capital policy

8. It refers to one of the high risky and profitability policies.

• a. agrresssive working capital policy

• b. moderate working capital policy

• c. conservative working capital policy

9. A type of inventory that refers to the materials which are needed to smooth running of the manufacturing process.

• a. consumables

• b. finished goods

• c. spares

• d. work in progress

10. A type of inventory which includes the final output of the production of the business concern.

• a. consumables

• b. work in progress

• c. consumables

• d. finished goods

10. This refers to the time normally taken in receiving delivery after placing orders with supplies.

• a. lead time

• b. safety stock

• c. economic order quantity(EOQ)