CHAPTER 22 - WORKING CAPITAL MANAGEMENT


Net working capital Answer: b  Diff: E
 . Net working capital may be defined as current assets minus current liabilities.  This also defines the current ratio.

a. True
b. False

Net working capital Answer: b  Diff: E
 . Net working capital is defined as current assets divided by current liabilities.

a. True
b. False


Working capital Answer: b  Diff: E
 . An increase in a current asset account must be accompanied by a corresponding increase in a liability account.

a. True
b. False

Working capital policy Answer: a  Diff: E
 . Determination of a firm's investment in net operating working capital and how that investment is financed are elements of working capital policy.

a. True
b. False

Goal of cash management Answer: a  Diff: E

...

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Net working capital Answer: b  Diff: E
 . Net working capital may be defined as current assets minus current liabilities.  This also defines the current ratio.

a. True
b. False

Net working capital Answer: b  Diff: E
 . Net working capital is defined as current assets divided by current liabilities.

a. True
b. False


Working capital Answer: b  Diff: E
 . An increase in a current asset account must be accompanied by a corresponding increase in a liability account.

a. True
b. False

Working capital policy Answer: a  Diff: E
 . Determination of a firm's investment in net operating working capital and how that investment is financed are elements of working capital policy.

a. True
b. False

Goal of cash management Answer: a  Diff: E

...

LINK DOWNLOAD

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