Premium Essay

Working Cpital Management

In: Business and Management

Submitted By vishalvr
Words 8099
Pages 33
CHAPTER 15
MANAGING CURRENT ASSETS (Difficulty: E = Easy, M = Medium, and T = Tough)

Multiple Choice: Conceptual

Easy:

Working capital Answer: c Diff: E
[i]. Other things held constant, which of the following will cause an increase in working capital?

a. Cash is used to buy marketable securities. b. A cash dividend is declared and paid. c. Merchandise is sold at a profit, but the sale is on credit. d. Long-term bonds are retired with the proceeds of a preferred stock issue. e. Missing inventory is written off against retained earnings.

Working capital Answer: d Diff: E N
[ii]. Which of the following statements is most correct?

a. The current ratio is calculated as net working capital divided by current liabilities. b. Gross working capital represents current assets used in operations. c. Net working capital is defined as current assets minus current liabilities. d. Statements b and c are correct. e. Statements a, b, and c are correct.

Cash conversion cycle Answer: b Diff: E
[iii]. Helena Furnishings wants to sharply reduce its cash conversion cycle. Which of the following steps would reduce its cash conversion cycle?

a. The company increases its average inventory without increasing its sales. b. The company reduces its DSO. c. The company starts paying its bills sooner, which reduces its average accounts payable without reducing its sales. d. Statements a and b are correct. e. All of the statements above are correct.

Cash budget Answer: e Diff: E
[iv]. Which of the following is typically part of the cash budget?

a. Payments lag. b. Payment for plant construction. c. Cumulative cash. d. Statements a and c are correct. e. All of the above statements are correct.
Cash budget Answer: a Diff: E
[v]. Which of the following...

Similar Documents

Premium Essay

Working Capital Management in a Small Company in Vietna,

...Major: Finance Treasury WORKING CAPITAL MANAGEMENT IN THIET BI Y KHOA COMPANY Student Intake : VU NHAN NGHIA : 2 (2012-2013) Supervisor : NGUYEN VIET DZUNG Ho Chi Minh city, December 2013 Table of Contents INTRODUCTION ....................................................................................................................3 1. THEORETICAL BACKGROUND ................................................................................5 1.1. Concept of working capital management ................................................................5 Working capital definition .................................................................................5 Working capital management............................................................................5 1.1.1. 1.1.2. 1.2. 1.3. Role of working capital management .......................................................................6 Components of working captial management .........................................................7 Account receivables ............................................................................................7 Account payables ..............................................................................................10 Inventories .........................................................................................................12 Optimal level of working capital .....................................................................14 Working capital measurement......

Words: 10537 - Pages: 43

Premium Essay

Sec Annual Report 2010-11

...Floor) 10, Dilkusha Commercial Area Dhaka-1000, Bangladesh Phone: 9568101-2, 9561525 Website: http://www.secbd.org E-mail: secbd@bdmail.net Fax: (88)-02-9563721 Securities and Exchange Commission 2 SECURITIES AND EXCHANGE COMMISSION ANNUAL REPORT 2009-2010 CONTENTS INSIDE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Chairman’s Statement Economic Indicators of Bangladesh Capital Market Over the World Bangladesh Capital Market Capital Market Regulatory Reforms and Compliance Listing in Stock Exchanges Capital Issue Corporate Finance Registration Mutual Fund and SPV Surveillance Supervision and Regulation of Markets and Issuer Companies Supervision and Regulation of Intermediaries Central Depository Enforcement Law Management Information Systems Research & Development Bangladesh Institute of Capital Market Future Planning Financial Statements of the Commission Annexure Commission and the Commission’s Officers PAGE 04 06 09 11 16 26 28 30 32 36 38 39 47 49 50 50 50 51 52 52 53 54 86 3 1. Chairman’s Statement Securities and Exchange Commission (SEC) was established on 8 June 1993 through enactment of the Securities and Exchange Commission Act, 1993. The objectives of the SEC are to develop the securities markets and to frame necessary rules and regulations of capital markets and issues and dealings in securities with a view to provide for protection of investors. After establishment, the Commission has played significant role in the overall......

Words: 22689 - Pages: 91

Premium Essay

Security Echange Commission

...Floor) 10, Dilkusha Commercial Area Dhaka-1000, Bangladesh Phone: 9568101-2, 9561525 Website: http://www.secbd.org E-mail: secbd@bdmail.net Fax: (88)-02-9563721 Securities and Exchange Commission 2 SECURITIES AND EXCHANGE COMMISSION ANNUAL REPORT 2009-2010 CONTENTS INSIDE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Chairman’s Statement Economic Indicators of Bangladesh Capital Market Over the World Bangladesh Capital Market Capital Market Regulatory Reforms and Compliance Listing in Stock Exchanges Capital Issue Corporate Finance Registration Mutual Fund and SPV Surveillance Supervision and Regulation of Markets and Issuer Companies Supervision and Regulation of Intermediaries Central Depository Enforcement Law Management Information Systems Research & Development Bangladesh Institute of Capital Market Future Planning Financial Statements of the Commission Annexure Commission and the Commission’s Officers PAGE 04 06 09 11 16 26 28 30 32 36 38 39 47 49 50 50 50 51 52 52 53 54 86 3 1. Chairman’s Statement Securities and Exchange Commission (SEC) was established on 8 June 1993 through enactment of the Securities and Exchange Commission Act, 1993. The objectives of the SEC are to develop the securities markets and to frame necessary rules and regulations of capital markets and issues and dealings in securities with a view to provide for protection of investors. After establishment, the Commission has played significant role in the overall......

Words: 22689 - Pages: 91

Premium Essay

Tongue and Quill

...The Tongue and Quill AFH 33-337 1 AUGUST 2004 Communication is an essential tool for the twenty-first century Air Force BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE HANDBOOK 33-337 1 AUGUST 2004 Communications and Information THE TONGUE AND QUILL COMMUNICATING IS A POWERFUL TOOL FOR THE TWENTY-FIRST CENTURY AIR FORCE The Tongue and Quill is dedicated to every man and woman in today’s Air Force who will ever sling ink at paper, pound a keyboard, give a briefing, or staff a package to support the mission. Currently, The Tongue and Quill is widely used by Air Force military and civilian members, professional military school educators and students, and civilian corporations around the United States. As United States Air Force employees, it is important we communicate clearly and effectively to carry out our mission. This handbook together with AFMAN 33-326, Preparing Official Communications, will provide the necessary information to ensure clear communications— written or spoken. The use of the name or mark of any specific manufacturer, commercial product, commodity, or service in this publication does not imply endorsement by the Air Force To all you enthusiastic users worldwide, keep up the good fight! SUMMARY OF REVISIONS This revision improved organization; rearranged layout; updated quotes, art and word lists; and added material on preparing to write and speak, writing with focus, communicating to persuade, research, meetings, briefings and......

Words: 125419 - Pages: 502