Working Capital Management MCQ With Answers PDF: Working Capital Management MCQ and Answers are given below. These multiple-choice questions for Working Capital Management with answers are useful for MBA, BBA, B Com, M Com, PGDM, BA, MA, and UGC NET exams.

Here is a PDF file with MCQs on Working Capital Management. These questions are used to test your basic concepts of the subject of Working Capital Management. Update dumps provide these question answers and answer keys with explanations in detail. These questions will help you to crack your exams like SBI PO, SBI Clerk, IBPS PO, IBPS Clerk, RBI Assistant, UPSC CDS, etc.

A Short Overview of Working Capital Management MCQ

Working Capital Management MCQ With Answers

1. Investment in current assets should be _____

A. just adequate

B. more

C. less

D. maximum

Answer: just adequate

2. _______ varies inversely with profitability.

A. Risk

B. Assets

C. Liquidity

D. Revenue

Answer: Liquidity

3. Capital intensive firms rely on ______

A. debt

B. retained earnings

C. short term debts

D. Equity

Answer: debt

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

A. concept

B. time

C. future

D. work

Answer: concept

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

A. Business

B. Current asset

C. Operation

D. Operating

Answer: Operating

6. _______ method is not used for calculating working capital cycle.

A. Trial and error method

B. Regression analysis method

C. Percentage of sales method

D. Operating cycle approach

Answer: Trial and error method

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

A. concept

B. time

C. future

D. work

Answer: time

8. Operating cycle is also called as _____

C. Working cycle

A. Business cycle

D. Current asset cycle

B. Working capital cycle

Answer: Working capital cycle

9. Spontaneous financing consists of ______

A. a line of credit

B. short-term loans

C. accounts receivable

D. accounts payable

Answer: accounts payable

10. The major current assets are _____

A. cash and marketable securities

B. accounts receivable (debtors)

C. inventory (stock)

D. All of the above

Answer: All of the above

11. The basic current liabilities are _____

A. accounts payable and bills payable

B. bank overdraft

C. outstanding expenses.

D. All of the above

Answer: All of the above

12. There are two concepts of working capital – gross and ____

A. Zero

B. Net

C. Cumulative

D. distinctive

Answer: Net

13. Working capital is also known as___ capital.

A. current asset

B. Operating

C. projecting

D. Operation capital

Answer: Operating

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

A. Zero

B. Net

C. Gross

D. Distinctive

Answer: Gross

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

A. Current

B. Fixed

C. Total

D. All of the above

Answer: Current

16. Working capital is calculated as _____

A. Core current assets less core current liabilities

B. Current assets less current liabilities

C. Core current assets less current liabilities

D. Liquid assets less current liabilities

Answer: Current assets less current liabilities

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

A. Zero

B. Net

C. Gross

D. Distinctive

Answer: Net

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

A. Summative

B. Negative

C. Excessive

D. Positive

Answer: Positive

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

A. Positive

B. Negative

C. Excessive

D. Zero

Answer: Negative

20. _____is not an advantages of trade credit.

A. buyout financing

B. informality

C. easy availability

D. flexibility

Answer: buyout financing

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