Practice Test

Q1) Working Capital is Show Answer

Q2) Working Capital is Show Answer

Q3) Gross working capital is equal to Show Answer

Q4) Negative working capital is equal Show Answer

Q5) Net working capital is equal to Show Answer

Q6) Cash working capital is equal to Show Answer

Q7) Permanent working capital is Show Answer

Q8) Seasonal working capital is Show Answer

Q9) Manufacturing organisation requires Show Answer

Q10) Service organisation requires Show Answer

Q11) Longer the process period Show Answer

Q12) The organisation which allows longer period of credit to debtors requires Show Answer

Q13) Sale of goods on cash basis Show Answer

Q14) Longer period of credit allowed by creditors Show Answer

Q15) Shortage of working capital may result in Show Answer

Q16) Operating cycle period can be reduced by Show Answer

Q17) Following information is about the firm :Material storage period 85 days ,Finished Goods storage period 10 days,Collection period 30 days, Payment period 24 days, Processing period 15 days The operating cycle of the firm is, Show Answer

Q18) Cost of Material Consumption 67,500.Opening stock of material 12,500.Closing stock of Rs.10,000.one year = 360 days.Raw material shotage period is Show Answer

Q19) Working capital is excess of current assets over___ Show Answer

Q20) Working capital = Current __less Current____. Show Answer

Q21) Gross working capital = Total______. Show Answer

Q22) Increase in current assets ____working capital. Show Answer

Q23) Decrease in current liabilities ____ working capital. Show Answer

Q24) Minimum amount of working capital is ________. Show Answer

Q25) Working capital required to meet seasonal requirements is ___________. Show Answer

Q26) Working capital at cash cost is called ____ capital Show Answer

Q27) Positive working capital is excess of current assets over______. Show Answer

Q28) Value of creditors depends on period of credit allowed by______. Show Answer

Q29) In computation of working capital requirement Stock of finished goods is valued at.______ Show Answer

Q30) Outstanding expenses bring _____the requirement of working capital. Show Answer

Q31) Advance from customers brings ______the requirement of working capital. Show Answer

Q32) Margin of safety is _____to net current assets to get net working capital. Show Answer

Q33) Working capital is excess of current assets over current liabilities. Show Answer

Q34) Higher net working capital leads to higher liquidity. Show Answer

Q35) Manufacturing organization requires higher working capital. Show Answer

Q36) Trading organization requires less working capital. Show Answer

Q37) Longer the process higher will be the working capital requirement. Show Answer

Q38) A large sized organization required less working capital. Show Answer

Q39) Cash cost approach is the appropriate bases of estimation of working capital. Show Answer

Q40) Debtors may be valued at cost or at S.P. Show Answer

Q41) Stock of finished goods should be valued at cost of production. Show Answer

Q42) Gross working capital is equal to net current assets. Show Answer

Q43) Net working capital is excess of current liabilities over current assets. Show Answer

Q44) Permanent working capital is the maximum capital that must be maintained. Show Answer

Q45) Temporary working capital is seasonal working capital. Show Answer

Q46) Seasonal working capital remains constant. Show Answer

Q47) Permanent working capital remains constant. Show Answer

Q48) Longer the period of credit allowed to debtors, more will be the requirement of working capital. Show Answer

Q49) Longer the period of credit allowed by suppliers lesser will be requirement of working capital. Show Answer

Q50) Operating cycle approach calculates working capital on the basis of length of operating cycle. Show Answer

Q51) Lag in payment of overheads increases working capital requirement. Show Answer

Q52) Provision for contingency is added to net current assets to get working capital requirement. Show Answer

Q53) A service organization requires more working capital than that of a trading organization. Show Answer

Q54) The total current asset without deducting the current liabilities Show Answer

Q55) Peak working capital variable is required in________ period Show Answer

Q56) When cash received againts overdraft from bank. Show Answer

Q57) Working capital is also known as 'circulating capital, fluctuating capital & revolving capital' the aforesaid statement is Show Answer

Q58) Permanent working capital is also known as Show Answer

Q59) The term net working capital refers to current assets minus current liabilities Show Answer

Q60) cash working capital includes Show Answer

Q61) The term gross working capital is known as Show Answer

Q62) The amount of funds invested in current assets is called______ Show Answer

Q63) A conservative working capital strategy calls for high levels of current assets in relation to sales. Show Answer

Q64) The term net working capital refers to Show Answer

Q65) In Business system working capital requirement depends on Show Answer

Q66) ______refers to idle funds which earns no return Show Answer

Q67) Methods of inventory management Show Answer

Q68) Determinants of working capital is Show Answer

Q69) Working capital does not depends on Show Answer

Q70) Current assets - current liabilities Show Answer

Q71) The duration of operating cycle can be reduce by Show Answer

Q72) The minimum amount of working capital is Show Answer

Q73) Which of the following is not a current asset? Show Answer

Q74) Working capital required at higher level activity Show Answer

Q75) Which of the following is not considered a current asset? Show Answer

Q76) Sequence of Operating cycle of manufacturing concern is 1. Inventory & expenses 2. accounts receivable 3. sale 4. cash Show Answer

Q77) ______will ensure high return on investment Show Answer

Q78) Cash credit, overdraft, bills discounting, bill acceptance, time of credit better of credit & bank guarantee are means of bank finance. Show Answer

Q79) Shortage of working capital may result in________ Show Answer

Q80) Net operating cycle represents Show Answer