Working Capital Quiz

What is considered a major component of working capital?

• Equity

• Long-term Liabilities

• Current Assets

• Fixed Assets

Which of the following is an example of current assets?

• Land and Building

• Patents and Trademarks

• Accounts Receivable

• Goodwill

What is the definition of current assets?

• Company's resources expected to turn to cash within one year

• Company's cash only

• Company's long-term investments

• Company's inventory only

Which of the following is NOT an example of current assets?

• Property, Plant, and Equipment

• Temporary Investments

• Prepaid Expenses

• Cash and Cash Equivalents

What is considered the other major component of working capital?

• Current Liabilities

• Long-term Investments

• Equity

• Fixed Assets

Which of the following is an example of current liabilities?

• Common Stock

• Dividends payable

• Retained Earnings

• Loan principal instalment amounts due within one year

What is the definition of current liabilities?

• Company's long-term obligations

• Company's cash reserves

• Company's obligations due within one year

• Company's equity

Which of the following is NOT an example of current liabilities?

• Accounts Payable

• Long-term Loan

• Bank Overdraft

• Accrued Expenses

What is an example of inventory as a current asset?

• Raw Materials

• Land

• Buildings

• Patents

Which of the following is an example of prepaid expenses as a current asset?

• Wages Payable

• Supplies

• Accounts Payable

• Insurance Premiums