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
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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
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D. All of the above
There are two concepts of working capital – gross and ____
A. Zero
B. Net
C. Cumulative
D. distinctive
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B. Net
Working capital is also known as___ capital.
A. current asset
B. Operating
C. projecting
D. Operation capital
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B. Operating
______ working Capital refers to the firm’s investment in current assets.
A. Zero
B. Net
C. Gross
D. Distinctive
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C. Gross
In finance, “working capital” means the same thing as _______ assets.
A. Current
B. Fixed
C. Total
D. All of the above
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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
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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
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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