Given below are Working Capital Management MCQ with answers updated in 2021. These Working Capital multiple choice questions are useful for MBA, BBA, B Com, M Com, PGDM, BA, MA, UGC NET, SET, MPSC, UPSC and Ph D exams.
The major current assets are _____
A. cash and marketable securities
B. accounts receivable (debtors)
C. inventory (stock)
D. All of the above
View Answer
D. All of the above
The basic current liabilities are _____
A. accounts payable and bills payable
B. bank overdraft
C. outstanding expenses.
D. All of the above
View Answer
D. All of the above
There are two concepts of working capital – gross and ____
A. Zero
B. Net
C. Cumulative
D. distinctive
View Answer
B. Net
Working capital is also known as___ capital.
A. current asset
B. Operating
C. projecting
D. Operation capital
View Answer
B. Operating
______ working Capital refers to the firm’s investment in current assets.
A. Zero
B. Net
C. Gross
D. Distinctive
View Answer
C. Gross
In finance, “working capital” means the same thing as _______ assets.
A. Current
B. Fixed
C. Total
D. All of the above
View Answer
A. Current
Working capital is calculated as _____
A. Core current assets less core current liabilities
B. Current assets less current liabilities
C. Core current assets less current liabilities
D. Liquid assets less current liabilities
View Answer
B. Current assets less current liabilities
______ working capital refers to the difference between current assets and current liabilities.
A. Zero
B. Net
C. Gross
D. Distinctive
View Answer
B. Net
A _______ net working capital will arise when current assets exceed current liabilities.
A. Summative
B. Negative
C. Excessive
D. Positive
View Answer
D. Positive
A ______ net working capital occurs when current liabilities are in excess of current assets.
A. Positive
B. Negative
C. Excessive
D. Zero
View Answer
B. Negative
_____is not an advantages of trade credit.
A. buyout financing
B. informality
C. easy availability
D. flexibility
View Answer
A. buyout financing
________ refers to the funds, which an organisation must possess to finance its day to day operations.
A. Retained earnings
B. Fixed capital
C. Working Capital
D. All of the above
View Answer
C. Working Capital
Investment in current assets should be _____
A. just adequate
B. more
C. less
D. maximum
View Answer
A. just adequate
_______ varies inversely with profitability.
A. Risk
B. Assets
C. Liquidity
D. Revenue
View Answer
C. Liquidity
Capital intensive firms rely on ______
A. debt
B. retained earnings
C. short term debts
D. Equity
View Answer
A. debt
On the basis of _____, working capital is classified as gross working capital and net working capital.
A. concept
B. time
C. future
D. work
View Answer
A. concept
______ cycle analyzes the accounts receivable, inventory, and accounts payable cycles in terms of a number of days?
A. Business
B. Current asset
C. Operation
D. Operating
View Answer
D. Operating
_______ method is not used for calculating working capital cycle.
A. Trial and error method
B. Regression analysis method
C. Percentage of sales method
D. Operating cycle approach
View Answer
A. Trial and error method
On the basis of _____, working capital may be classified as: 1) Permanent or fixed working capital. 2) Temporary or variable working capital.
A. concept
B. time
C. future
D. work
View Answer
B. time
Operating cycle is also called as _____
C. Working cycle
A. Business cycle
D. Current asset cycle
B. Working capital cycle
View Answer
B. Working capital cycle
Spontaneous financing consists of ______
A. a line of credit
B. short-term loans
C. accounts receivable
D. accounts payable
View Answer
D. accounts payable
Above said Working Capital Management MCQ are helpful for students studying in various universities in India such as Pune University, Mumbai University, Anna University, and Calicut University.
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