Here is an interesting 'working capital management' quiz. Take this quiz to see how strong knowledge of the accounts subject you have. Working capital management is one of the very important components of financial management. This subject is concerned with the short-term finance of the business which is a closely related trade between profitability and liquidity. If you are prepared to take this test, let's begin then. All the best!
Cash float.
Accounts receivable.
Credit sales.
A new personal computer for the office.
The current ratio includes inventories and the quick ratio does not.
The current ratio does not include inventories and the quick ratio does.
The current ratio includes physical capital and the quick ratio does not.
The current ratio does not include physical capital and the quick ratio does.
All assets should be financed with permanent long term capital.
Temporary current assets should be financed with temporary working capital.
Permanent current assets should be financed with permanent working capitals.
Long term assets should be financed from long term capital.
Making greater use of short term finance and maximizing net short term asset.
Making greater use of long term finance and minimizing net short term asset.
Making greater use of short term finance and minimizing net short term asset.
Making greater use of long term finance and maximizing net short term asset.
Acid test days.
Accounts receivable days.
Accounts payable days.
Inventory days.
Inventories
Current liabilities
Accounts receivable
Accounts payable
Cash
Working capital = current assets – current liabilities.
Working capital = current assets + current liabilities.
Working capital = current assets - inventory - accounts payable.
Operating capital
Current assets capital
Capital relating to main projects of the company
Percentage of sales method
Operating cycle approach
Trial and error method
The assets that can be sold easily by the companies.
The assets that are converted into cash within a period of one year.
Assets that are held by the companies to pay off the current liabilities.