Making greater use of long term finance and minimizing net short term asset. Buy this Ebook 15% … Rajat Jain. Generally, it is the difference between current assets and current liabilities. Multiple-choice questions Try the multiple choice questions below to test your knowledge of this chapter. 34% Off. permanent … Making greater use of long term finance and maximizing net short term asset. Related MBA Books. If the company pays off the debts on time while generating revenues, then it ensures that the operating cycle of the company is properly funded, which will likely to boost the credit score of the company. The long-run objective of financial management is to: a) maximize earnings per share. 3 … Net Profit Ratio Signifies: (a) Operational Profitability, (b) Liquidity Position, (c) Big-term Solvency, (d) Profit for Lenders. All assets financed with a 50 percent equity, 50 percent long-term debt mixture. One of the major aspects of an effective working capital management is to have regular analysis of the company’s currents assets … What is working capital management? 134k watch mins. By Mehtajimmit | Last updated: Oct 19, 2020. Professionals, Teachers, Students and Kids Trivia Quizzes to test your knowledge on the … Ebook Research Methodology ₹225.00 ₹160.31. To put it in other words, it is applying general management standards to the financial resources of the firm. Working Capital is the money used to make goods and attract sales. The focal point is the analytical approach to management of working capital. 3. Which of the following working capital strategies is the most aggressive. Working capital management questions and answers on topics like types & primary objective of working capital management, working capital cycle, factors affect working capital requirement, investment & signinficance of working capital. The session will be conducted in Hindi and note will be provided in English. … Permanent current assets with short-term debt. Watch Now. 1 and 2 only B. 14 x11 Financial Management B. GENERAL BANK MANAGEMENT – INTERNATIONAL BANKING – MODULE-A. Working Capital Turnover measures the relationship of Working Capital with: (a) Fixed Assets, (b) Sales, (c) Purchases, (d) Stock. ... Next working day. Exports and Imports come under the purview of : Ministry of Finance. The cost structure for the company’s product, for the above mentioned activity level is detailed below. Controlling working capital, Managing working capital and effectively managing resources, all this terms means the same. The two major components of Working Capital are Current Assets and Current Liabilities. Ended on Sep 16, 2020. MCQ for Finance. Accounting Ratios are important tools used by (a) Managers, (b) Researchers, (c) Investors, (d) All of the above 2. 3. Removing question excerpt is a premium feature. MCQs Of Working Capital Management For MBA by Mr. Manish Agarwal Tags: MCQs Of Working Capital Management For MBA by Mr. Manish Agarwal MBA MBA Dr. A.P.J. The primary goal of the financial management is ____________. Share. MULTIPLE CHOICE QUESTIONS . A company’s working capital essentially consists of current assets and current liabilities. Which of the following statements concerning working capital management are correct? The fundamental objective of the company is to maximise the wealth of its shareholders and good working capital management helps to achieve this by minimising the cost of investing in current assets. In this Session, CA Ankit Bajaj will do the Quick Revision of Working Capital Management and MCQ 5, this session will be beneficial for CA Intermediate Students. Working Capital Management (WCM) refers to all the strategies adopted by the company to manage the relationship between its short term assets and short term liabilities with the objective to ensure that it continues with its operations and meet its debt obligations when they fall due. Accounting Ratios are important tools used by (a) Managers, (b) Researchers, (c) Investors, (d) All of the above 2. "Working capital is also known as", management of working capital Multiple Choice Questions (MCQs) with choices work in progress capital, current capital or circulating capital, day-to-day capital, and trading capital for master's degree in business administration. All assets should be financed with permanent long term capital. 2. C. acquiring capital assets of the organization, Related Questions on Financial Management, More Related Questions on Financial Management. There are broadly 3 working capital management strategies/ approaches to choose the mix of long and short-term funds for financing the net working capital of a firm viz. Some additional financial indicators have always been considered for effective management such as turnover ratio, ratio of collection, performance ratio, etc. MCQ quiz on Customer Relationship Management (CRM) multiple choice questions and answers on Customer Relationship Management (CRM) MCQ questions quiz on Customer Relationship Management (CRM) objectives questions with answer test pdf for interview preparations, freshers jobs and competitive exams. Which ratio measures the number of times the receivables are rotated in a year in terms of sales? Temporary current assets should be financed with temporary working capital. Permanent current assets with long-term debt. The goal of working capital management is to ensure that a company can afford its day-to-day operating expenses while, at the same time, investing the company's assets in the most productive way. Integrated treasury b. Multiple-choice questions Try the multiple choice questions below to test your knowledge of this chapter. The management of G Ltd has called for a statement showing the working capital needed to finance a level of 3,00,000 units of output for the year. In other words, greater the size of the business, greater is the … Exports and Imports come under the purview of : Ministry of Finance. | Take This Quiz! Working Capital Management refers to the management of the capital that the company requires for financing its daily business operations and it is important for the company in order to maximize its operational efficiency, manage its short term liabilities and assets properly, avoiding the underutilization of the resources and avoiding the overtrading, etc. Long term assets should be financed from long term capital. AQ076-3-2-MF Working Capital Management Compensating Balance Many banks require a borrower to hold 10% to 20% of the outstanding loan balance on deposit in the borrower’s account (minimum balance in the bank throughout the loan period) This required amount is known as compensating balance is generally calculated as a percentage of the borrower’s loan’s outstanding. Buy this Ebook 29% Off. Watch Now. Net Profit Ratio Signifies: ... Profit for Lenders. Hi, If compared the response in Question 2 with example 1 done by you in Chapter 1, I understand vice-versa. First 15 minutes - Subjectwise strategy - CA Inter. Site Navigation; Navigation for Chapter 16: Working capital management A. Short-term assets financed with equity. In Ratio Analysis, the term Capital Employed refers to: … Abdul Kalam Technical University MBA English MBA Question Bank. In this Session, CA Ankit Bajaj will do the Quick Revision of Working Capital Management and MCQ 1, this session will be beneficial for CA Intermediate Students. Managing working capital means finding a balance between… a. In other words, the goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. Working Cap.mgmt Questions Solution. "Shareholder wealth" in a firm is represented by: a) the number of people employed in the firm. What is working capital management? The less Working Capital used to attract sales, the higher is likely to be the return on investment. ... (MCQs) are given at the end of different Chapters. This topic, mostly ignored by academics for years, is now gaining importance as we realize that financial markets are not as efficient as they were assumed to be, especially as firms expand outside the developed economies. Working capital management questions and answers on topics like types & primary objective of working capital management, working capital cycle, factors affect working capital requirement, investment & signinficance of working capital. The current ratio includes inventories and the quick ratio does not. All assets financed with a 50 percent equity, 50 percent long-term debt mixture. These strategies are different because of their different trade-off between risk and profitability. Ebook Strategic Management ₹160.00 ₹106.40. 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