1. Fluctuating Working Capital is also called as –

2. Which of the following analyzes the accounts receivable, inventory, and accounts payable cycles in terms of a number of days?

3. _____varies inversely with profitability.

4. Positive working capital means that __

5. Which of the following is not correct with the matching strategy?

6. It is understood that a current ratio of _____ for a manufacturing firm implies that the firm has an optimum amount of working capital.

7. Which of the following is/are method of maximum permissible

8. A lower current assets/fixed assets ratio means –

9. Negative working capital means that –

10. Initial Working Capital

11. Which of the following is determinant of working capital?
(1) Nature and size of business
(2) Manufacturing cycle
(3) Credit policy
(4) Production policy
Select the correct answer from the options given below.

12. K Ltd. had sales last year of ₹ 26,50,000, including cash sales of ₹ 2,50,000. If its average collection period was 36 days, its ending accounts receivable balance is closest to
(Assume a 365 days year.)

13. Regular Working Capital:

14. Permanent working capital –

15. If a firm has insufficient working capital and tries to increase sales, it can easily over-stretch the financial resources of the business. This is called –

16. Statement I:
Maintaining adequate working capital is not just important in the short term. Sufficient liquidity must be maintained in order to ensure the survival of the business in the long term as well.
Statement II:
Even a profitable business may fail if it does not have the adequate cash flow to meet its liabilities as they fall due.
Select the correct answer from the options given below.

17. A higher current assets/fixed assets ratio indicates –

18. A conservative policy implies –

19. When the current ratio is 2:5, and the amount of current liabilities is ₹ 25,000, what is the amount of current assets?

20. Other things remaining constant, if the debtors increase as compared to last year it means –

21. Working capital =

22. Operating cycle is also called as –

23. Which of the following will be considered while calculating working capital?
(1) Short Term Advances
(2) Stock of WIP
(3) Short Term Investments
(4) Perpetual inventory policy
Select the correct answer from the options given below.

24. While calculating working capital based on cash cost –

25. For reducing and controlling working capital requirement which of the following step is required to be taken –
(I) Reduction of the manufacturing cycle.
(II) Increase of credit period allowed by creditors to the extent that does not affect the production.
(Ill) Reduction in credit period given to customers.
Select the correct answer from the options given below.