MT - TR billing TRAI WC Inv

1. Gross working capital =

• Total of current assets
• Total liability
• Current assets- current liablity
• None of the above

Net working capital=

• Total liability
• Total of current assets
• Total Current Assets-Total Current Liabilities
• None of the above

Permanent Working capital is also known as

• Variable working Capital
• Fixed working Capital
• Total liability
• All of the above

Temporary Working capital is also known as

• Fixed working Capital
• Variable working Capital
• Total liability
• AC is correct

The duration of time required to complete the sequence of events right from purchase of raw material/goods for cash to the realization of sales in cash is called the

• Operations cycle
• operating circle
• operating cycle
• None of the above

Operating cycle is also known as

• Trade cycle
• Working capital circle
• Working capital cycle
• ABC

The two important aims of the working capital management are

• profitability and solvency.
• profitability and liqudity
• solvency and liqudity
• A&B but not C

Working Capital is the excess of

• Current assets over current liabilities
• Current assets plus current liabilities
• current liabilities-   Current assets
• None of the above

This minimum level of current assets is referred to

• to as permanent working capital
• to as Temporary working capital
• Current Assets-Inventory+prepaid exp
• None of the above

the cost of liquidity ______________with the level of current assets

• increases
• Decreases
• Equals
• All of the above