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CA Final International Working Capital Management — practice questions — page 2

Explore 44 free International Working Capital Management questions in CA Final Strategicfinancialmanagement. Open each question or exercise to read its content, reference answers and available explanation.

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International Working Capital Management questions and exercises with answers

Showing questions 31–44 of 44.

What is gross working capital equal to?Read the answer and worked solution →Which of these is a current liability among the key working capital accounts?Read the answer and worked solution →What is another name for the working capital cycle?Read the answer and worked solution →What does the cash conversion cycle measure?Read the answer and worked solution →How can a company shorten its working capital cycle?Read the answer and worked solution →Working capital decisions generally cover what time horizon?Read the answer and worked solution →Which firm policy directly affects the cash conversion cycle by governing sales on credit?Read the answer and worked solution →Which technique converts debtors to cash in short-term financing?Read the answer and worked solution →Which bank service moves surplus balances into a money market fund overnight?Read the answer and worked solution →What does a lockbox service help a company do?Read the answer and worked solution →What does positive pay reduce?Read the answer and worked solution →When does close-out netting normally operate?Read the answer and worked solution →What is the primary objective of netting in financial markets?Read the answer and worked solution →In a multilateral net settlement system, how does each participant settle?Read the answer and worked solution →

Worked practice questions

What is gross working capital equal to?

  1. All current liabilities
  2. All current assets
  3. Total owners equity
  4. Net fixed assets
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Correct answer: B. All current assets

Gross working capital is defined as the total of current assets, before subtracting any short-term liabilities.

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Which of these is a current liability among the key working capital accounts?

  1. Closing stock held
  2. Cash in the bank
  3. Accounts receivable
  4. Accounts payable
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Correct answer: D. Accounts payable

Accounts payable is the one liability among cash, receivables, inventory and payables, which are the four key accounts.

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What is another name for the working capital cycle?

  1. Cash conversion cycle
  2. Capital budgeting cycle
  3. Debt servicing cycle
  4. Dividend payout cycle
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Correct answer: A. Cash conversion cycle

The working capital cycle is also known as the cash conversion cycle.

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