Working Capital Management (HSC SSCE Business Studies): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
How is net working capital calculated?
How is net working capital calculated?
Current assets minus current liabilities
Which of these is a current asset?
Which of these is a current asset?
Accounts receivable
Which of these is a current liability?
Which of these is a current liability?
Accounts payable
What is the formula for the current ratio?
What is the formula for the current ratio?
Current assets ÷ current liabilities
What current ratio is generally considered acceptable?
What current ratio is generally considered acceptable?
2:1 (200%)
What is the typical payment period for accounts receivable?
What is the typical payment period for accounts receivable?
30 to 90 days
What percentage of business failures result from poor financial control?
What percentage of business failures result from poor financial control?
33%
In a leasing agreement, what is the lessor?
In a leasing agreement, what is the lessor?
The owner of the asset
What is the primary advantage of sale and lease-back?
What is the primary advantage of sale and lease-back?
Large cash injection improving liquidity
What is a key benefit of the JIT inventory system?
What is a key benefit of the JIT inventory system?
Reduces storage costs