Top 80+ Solved working capital MCQ Questions Answer
Q. An example of fixed asset is________.
a. live stock.
b. value stock.
c. income stock.
d. all of the above.
Q. Which one of the following is not the determinant of the working capital?
a. size of the firm
b. operating cycle
c. terms of credit
d. competitors
Q. Permanent working capital ___
a. will vary at all times
b. will vary with volumes
c. fixed at all times
d. fluctuates according to the season
Q. Which one of the following is not a method to find working capital requirement?
a. percent of sales method
b. working capital components method
c. operating cycle method
d. physical method
Q. The Capital used for meeting routine and repetitive expenses of day to day businessoperations is called____.
a. reserve capital
b. working capital
c. fixed capital
d. regular capital
Q. Gross working capital represents __________.
a. total current liabilities
b. the excess of current assets over current liabilities
c. total current assets
d. total liquid assets
Q. Net working capital is the excess of current assets over ________.
a. current liabilities
b. long term liabilities
c. contingent liabilities
d. fixed liabilities
Q. A positive (net) working capital will arise when current assets exceed _________.
a. fixed liabilities
b. contingent liabilities
c. long term liabilities
d. current liabilities
Q. The net working capital, being the difference between current assets and current liabilities isa _______.
a. misleading concept
b. quantitative concept
c. qualitative concept
d. none of the above
Q. The Funds required by way of permanent working capital should be provided by__________.
a. indigenous banks
b. commercial banks
c. rbi
d. proprietors
Q. Service and Financial concerns may have _____.
a. longest operating cycle
b. shortest operating cycle
c. manufacturing phase
d. none of these
Q. _____ is that minimum amount which should always be present in the business to carry outthe activities without a break.
a. net working capital
b. gross working capital
c. permanent working capital
d. temporary working capital
Q. Working capital over and above the fixed working capital would be termed as _______.
a. temporary working capital
b. permanent working capital
c. net working capital
d. gross working capital
Q. __________ denotes a situation of too much or excessive working capital.
a. gross working capital
b. redundant working capital
c. permanent working capital
d. temporary working capital
Q. _________ being the life blood of a business requires to be maintained in reasonablyadequate quantity to run business successfully.
a. working capital
b. proper documents
c. assets
d. petty cash