Working capital

Working capital

Professional Development

8 Qs

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Working capital

Working capital

Assessment

Quiz

Other

Professional Development

Hard

Created by

Pali Gaur

Used 2+ times

FREE Resource

8 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

On The basis of ______,working capital may be classified as:

1)Permanent or Fixed Working Capital

2)Temporary or Variable Working Capital

Concept

Time

Future

Work

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In finance, "working capital" means the same thing as

Total Assets.

Fixed Assets.

Current Assets.

Current Assets minus Current Liabilities.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following would be consistent with a more aggressive approach to financing working capital?

Financing short-term needs with short-term funds.

Financing permanent inventory buildup with long-term debt.

Financing seasonal needs with short-term funds.

Financing some long-term needs with short-term funds.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Spontaneous financing includes

Accounts Receivable

Accounts Payable

Short-Term Loans

A Line of Credit

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Net working capital refers to

total assets minus fixed assets.

current assets minus current liabilities.

current assets minus inventories.

current assets.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

At the breakeven point:

Profit is $0

Fixed Cost + Variable Cost = Sales

Fixed Cost = Contribution Margin

All The Given Choices

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Contribution margin ratio is:

Total Contribution Margin / Sales

Sales / Contribution Margin per unit

Fixed Cost / Contribution margin per unit

Sales / Variable costs

8.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

CVP analysis can be used to study the effect of

Changes in selling price on profitability

changes in variable costs on profitability

Changes in product sales on profitability

All the given options