Inter PN-11 FMDA Quiz 5

1. Operating cycle is also called as              

2. On the basis of         , working capital may be classified as: 1) Permanent or fixed working capital. 2) Temporary or variable working capital.

3.                 method is not used for calculating working capital cycle.

4.             cycle analyzes the accounts receivable, inventory, and accounts payable cycles in terms of a number of days?

5. On the basis of         , working capital is classified as gross working capital and net working capital.

6. Capital intensive firms rely on                

7.                 varies inversely with profitability.

8. Investment in current assets should be   

9.                 refers to the funds, which an organisation must possess to finance its day to day operations.

10. X Ltd. distributes its products to more than 500 retailers. The company’s collection period is 30 days and keeps its inventory for 20 days. The operating cycle would be:

11. A             net working capital occurs when current liabilities are in excess of current assets.

12. A               net working capital will arise when current assets exceed current liabilities.

13.             working capital refers to the difference between current assets and current liabilities.

14. In finance, “working capital” means the same thing as             assets.

15. working Capital refers to the firm’s investment in current
assets.

16. Working capital is also known as             capital.

17. There are two concepts of working capital – gross and           

18. The basic current liabilities are                .

19. Working capital is calculated as               .

20. The discounted cash flows techniques are:

21.                 ignores the time value of money.

22. Savings in respect of a cost is treated in capital budgeting as:

23. In Capital Budgeting, Sunk cost is excluded because it is:

24. A proposal is not a Capital Budgeting proposal if it:

25. Which of the following is not included in incremental A flows?