Working Capital MCQs

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Net working capital is the difference between






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Determining the appropriate level of working capital for a firm requires






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Determining the appropriate level of working capital for a firm requires






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All of the following statements in regard to working capital are true except






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During the year, Mason Companys current assets increased by $120,000, current liabilities decreased by $50,000, and net working capital






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Mason Companys board of directors has determined 4 options to increase working capital next year. Option 1 is to increase current assets by $120 and ...






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Which one of the following would increase the net working capital of a firm?






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Since Marsh, Inc., is experiencing a sharp increase in sales activity and a steady increase in production, the management of Marsh has adopted an aggr...






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As a company becomes more conservative in its working capital policy, it would tend to have a(n)






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As a company becomes more conservative with respect to working capital policy, it would tend to have a(n)






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If a firm increases its cash balance by issuing additional shares of common stock, net working capital






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Starrs Company has current assets of $400,000 and current liabilities of $300,000. Starrs could increase its net working capital by the






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The working capital financing policy that subjects the firm to the greatest risk of being unable to meet the firm’s maturing obligations is the poli...






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Clay Corporation follows an aggressive financing policy in its working capital management while Lott Corporation follows a conservative financing poli...






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Which of the following is not a function of financial management?






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All of the following statements in regard to working capital are correct except:






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Determining the appropriate level of working capital for a firm requires






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Which of the following actions is likely to reduce the length of a firms cash conversion cycle?






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Eagle Sporting Goods has $2.5 million in inventory and $2 million in accounts receivable. Its average daily sales are $100,000. The firms payables ...






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Jones Company has $5,000,000 of average inventory and cost of sales of $30,000,000. Using a 365-day year, calculate the firms inventory conversion ...






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The length of time between the acquisition of inventory and payment for it is called the






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If everything else remains constant and a firm increases its cash conversion cycle, its profitability will likely






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An organization offers its customers credit terms of 5/10 net 20. One-third of the customers take the cash discount and the remaining customers pay o...