Working capital Set 1
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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Working capital Set 1
Q1 | The Funds required by way of permanent working capital should be provided by__________.
- indigenous banks
- commercial banks
- rbi
- proprietors
Q2 | Service and Financial concerns may have _____.
- longest operating cycle
- shortest operating cycle
- manufacturing phase
- none of these
Q3 | _____ is that minimum amount which should always be present in the business to carry outthe activities without a break.
- net working capital
- gross working capital
- permanent working capital
- temporary working capital
Q4 | Working capital over and above the fixed working capital would be termed as _______.
- temporary working capital
- permanent working capital
- net working capital
- gross working capital
Q5 | __________ denotes a situation of too much or excessive working capital.
- gross working capital
- redundant working capital
- permanent working capital
- temporary working capital
Q6 | _________ being the life blood of a business requires to be maintained in reasonablyadequate quantity to run business successfully.
- working capital
- proper documents
- assets
- petty cash
Q7 | According to ________ working capital refers to the company’s total investment in currentassets.
- net concept
- gross concept
- equal concept
- accounting concept
Q8 | According to ________ working capital refers to the difference between current assets andcurrent liabilities.
- equal concept
- accounting concept
- net concept
- gross concept
Q9 | The funds required for running an organisation are generally called as ____________.
- overdraft
- cash credit
- working capital
- operating profit
Q10 | The __________ is required to ensure circulation of operating cycle.
- regular working capital
- fixed working capital
- reserve working capital
- variable working capital
Q11 | ________ is the excess amount over the requirement for regular working capital.
- variable working capital
- fixed working capital
- reserve working capital
- regular working capital
Q12 | The working capital required to meet the seasonal need of the business is called _______.
- fixed working capital
- variable working capital
- special working capital
- seasonal working capital
Q13 | ___________ is required to meet special exigencies such as launching of extensive marketingcampaigns for conducting research.
- seasonal working capital
- special working capital
- reserve working capital
- regular working capital
Q14 | The statement of changes in financial position prepared to determine only the sources anduses of working capital between two dates of balance sheet is known as __________.
- cash flow statement
- memorandum balance sheet
- fund flow statement
- profit and loss account
Q15 | What are the aspects of working capital management?
- inventory management
- receivable management
- cash management
- all of the above
Q16 | _________ function includes a firm’s attempts to balance cash inflows and outflows.
- finance
- liquidity
- investment
- dividend
Q17 | Firms which are capital intensive rely on _________.
- equity
- short term debt
- debt
- retained earnings
Q18 | Hirer is entitled to claim ___________.
- depreciation
- salvage value
- hp payments
- none of above
Q19 | Which of the following is not an advantages of trade credit?
- easy availability
- flexibility
- informality
- buyout financing
Q20 | Which of the following are theories for dividend relevance?
- walter’s model
- mm approach
- game theory
- market value theory
Q21 | What is not a form of dividend?
- cash dividends
- bonus shares(stock dividend)
- share split
- split reverse
Q22 | The percentage of earnings paid as dividends is called __________.
- dividend policy
- payout ration
- cash dividends
- reverse split
Q23 | What are the various methods of estimating cash?
- receipts and payment method
- adjusted profit & loss method
- balance sheet method
- all of the above
Q24 | The art of managing, within the acceptable level of risk, the consolidated fundsoptimally and profitably is called _________.
- integrated treasury
- treasury management
- merchant banking
- none of the above
Q25 | What are the different types of underlying assets?
- stocks
- bonds
- currency
- stock indices