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Home » TOP 21 Working Capital Management MCQ With Answers

TOP 21 Working Capital Management MCQ With Answers

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

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