FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT

University

20 Qs

quiz-placeholder

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FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT

Assessment

Quiz

Arts

University

Medium

Created by

Mehala Ramakrishnan

Used 4+ times

FREE Resource

20 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the operating cycle?

The time taken to convert cash into goods

The time taken to convert cash into cash again

The time taken for the production process

The time taken to calculate profits

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following describes the correct order of the operating cycle?

Cash → Work in Progress → Raw Materials → Finished Goods → Sundry Debtors → Bills Receivables → Cash

Cash → Raw Materials → Work in Progress → Finished Goods → Sundry Debtors → Bills Receivables → Cash

Raw Materials → Work in Progress → Finished Goods → Sundry Debtors → Bills Receivables → Cash → Raw Materials

Cash → Sundry Debtors → Finished Goods → Work in Progress → Raw Materials → Bills Receivables → Cash

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the operating cycle measure?

Profitability of the business

Time from production to collection of cash

Efficiency in production

Total sales over a period

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following statements is true regarding working capital?

It represents excess of current liabilities over current assets.

It is used for day-to-day business operations.

It finances fixed assets of the business.

Total liabilities of the business

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Other term for working capital

Fixed capital

Long-term capital

Circulating capital

Retained earnings

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Permanent Working Capital means

Funds that are temporarily locked in assets

Funds permanently locked in current assets to ensure smooth business operations

Funds used for investment in fixed assets

Excess funds available for long-term loans

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Purpose of Regular Working Capital is

To expand the business operations

To handle contingencies and uncertainties

To keep the primary circulation of cash for wages, salaries, etc.

To purchase additional machinery

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