Financial Management
671. Who of the following make a broader use of accounting information?
- Accountants
- Financial Analysts
- Auditors
- Marketers
Correct answer: (B)
Financial Analysts
672. Working capital management involves the financing and management of the assets of the firm.
- Fixed
- Total
- Current
- None of the above
Correct answer: (C)
Current
673. Excess working capital results in
- Block of cash
- Loosing interests
- Lack of production
- Lack of smooth flow of production
Correct answer: (A)
Block of cash
674. The excess of current assets over current liabilities is known as
- Gross working capital
- Permanent working capital
- Temporary working capital
- Net working capital
Correct answer: (D)
Net working capital
675. The time period required to convert the credit sales into cash
- Operating cycle period
- Inventory conversion period
- Receivable conversion period
- None
Correct answer: (C)
Receivable conversion period
676. Working capital is also known as ______________ capital.
- circulating
- fluctuating
- fixed
- going
Correct answer: (B)
fluctuating
677. Factoring is a form of financing ______________.
- payable
- receivables
- borrowings
- debts
Correct answer: (C)
borrowings
678. Ordering cost is the cost of ______________ materials.
- selling
- purchasing
- stocking
- financing
Correct answer: (B)
purchasing
679. Which one of the following is capital expenditure:
- Capital invested by owner
- Selling expense for machine
- Machine purchased
- Daily expense to operate business
Correct answer: (C)
Machine purchased
680. The statement of cash flows
- must be prepared on a daily basis
- summarizes the operating, financing, and investing activities of an entity
- is another name for the income statement
- is a special section of the income statement
Correct answer: (B)
summarizes the operating, financing, and investing activities of an entity