Quiz #1 BUS. FINANCE

It refers to the efficient management of the firm’s current assets and current liabilities.

• Working Capital Management

• Working Cash Management

• Net Working Capital Management

• Net cash Management

A cash needed to facilitate the normal transactions of the business to carry out its purchases and sales activities.

• Precautionary Motive

• Transaction Motive

• Contractual Motive

• Speculative Motive

A process of closely monitoring of in and out of cash in the business.

• Projected Cash Flow Statement

• Cash Flow Management

• Cash Flow Statement

• Projected Cash Flow Management

Give the types of Capital.

• Fixed Equity

• Fixed Capital

• Working Equity

• Working Capital

It is the process of managing cash inflows and outflows.

• Cash Capital

• Cash Management

• Working Cash Management

• Cash Conversion Management

–Cash held ready for profit making or investment.

• Transaction Motive

• Precautionary Motive

• Speculative Motive

• Contractual Motive

–It measures as the sum of the Average Age of Inventory and Average Collection Period.

• Average age of inventory

• Average collection period

• Operating Cyle

• Cash Conversion Cycle

Give the two current assets categories in operating cycle.

–The objective in managing inventory is to convert it as quickly as possible to cash without losing sales due to stock outs.

Give the three types of inventories in Manufacturing Company.