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TOP 21 Working Capital Management MCQ With Answers

_____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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