B.Com Accounting & Finance Working Capital Management — practice questions
22 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice B.Com Accounting & Finance Working Capital Management in the app →Resources that are cash, near cash, or expected to become cash within a year are:Excess cash parked in short-term investments is held in:Working capital equal to the whole of current assets is called:The more refined measure, found by subtracting current liabilities, is:One stated goal of working capital management is to satisfy obligations as they:Another goal is keeping an optimal level of current assets, noting that cash itself provides:Working capital management covers all decisions involving current assets and:The time between beginning production and collecting cash from customers is the:That cycle is measured in:The number of days it takes to collect cash from a credit sale is the:The time taken to convert inventory into sales is also called the:The average number of days a company takes to pay its suppliers is the:That payables period is described as the element that probably cannot be optimised without:The first step in working out the inventory conversion period is to calculate the:Working capital needs that rise and fall with the season are described as:Working capital needs that stay in place all year round are described as:Better inventory management, better collections and longer supplier terms together will:Credit taken from suppliers, recorded as accounts payable, is called:Cash held by a business is needed above all to pay the bills and meet the:Assets that turn into cash within a year through normal operations are contrasted with capital that is:Because payments for purchases are usually made on credit, cash outflows in a month often do not equal:Excess cash invested in cash alternatives is said to create: