1. It is designed to ensure that a company operates efficiently by monitoring and
using its current assets and liabilities to the best effect.
A. working capital management C. inventory management
B. cash management D. receivable management
2. These refer to cash, accounts receivable, inventories, and prepaid expenses.
A. current assets C. current liabilities
B. noncurrent assets D. owner’s equity
3. It is the difference between current assets and current liabilities.
A. permanent working capital C. temporary working capital
B. net working capital D. contractual working capital
4. In this working capital financing policy, the permanent working capital
requirements should be financed by long-term sources while temporary
working capital requirements should be financed by short-term sources
of financing.
A. maturity-matching
C. aggressive
B. conservative D. modern
5. It is the time to collect cash from the sale of the inventory.
A. days of inventory C. days of receivable
B. days of payable D. none of the above
6. In this working capital financing policy, some of the permanent working
capital requirements are financed by short-term sources of financing.
A. maturity-matching C. aggressive
B. conservative D. modern
7. In this kind of working capital policy, some of the temporary working capital
requirements are financed by long-term sources of financing.
A. maturity-matching C. aggressive
B. conservative D. modern
8. It is the borrower’s willingness to pay the loan.
A. character C. collateral
B. capacity D. condition
9. It is the borrower’s security pledge for the loan payment.
A. character C. collateral
B. capacity D. condition
10.It is the borrower’s ability to pay the loan.
A. character C. collateral
B. capacity D. condition
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Answer:
1. A
2. A
3. B
4. A
5. C
6. C
7.B
8. A
9.C
10.B
Explanation: