FINANCIAL MANAGEMENT
Quiz
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Arts
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University
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Medium
Mehala Ramakrishnan
Used 4+ times
FREE Resource
20 questions
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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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