Question 1

One of the risks associated with holding large amounts of inventory is:

Accepted Answer

A)  Obliquity 
B)  Obeisance 
C)  Obsolescence 
D)  Obscurement 
A)  Obliquity 
B)  Obeisance 
C)  Obsolescence 
D)  Obscurement

Question 2

A company can limit the amount of credit allowed to customers in which of the following ways?

Accepted Answer

A)  Impose a time limit for payment 
B)  Limit the amount of credit available for each customer 
C)  Estimate the maximum total receivable figure the company can afford to finance 
D)  All of the above 
A)  Impose a time limit for payment 
B)  Limit the amount of credit available for each customer 
C)  Estimate the maximum total receivable figure the company can afford to finance 
D)  All of the above

Question 3

If two companies had the same amount of fixed assets and the same profit,the company with the lower amount of working capital would have a higher return on capital employed (ROCE)

Accepted Answer

A) True 
 B)False

Question 4

The outsourcing of the management of receivables is known as:

Accepted Answer

A)  Factoring 
B)  Economic order quantity 
C)  Credit rating 
D)  Receivership 
A)  Factoring 
B)  Economic order quantity 
C)  Credit rating 
D)  Receivership

Question 5

A company buys goods on 2 months credit.Raw materials are converted into finished goods in approximately 1.5 months,and then typically sold 1 month later.Sales are on credit and customers typically take 1 month to pay for the goods.
What is the Cash cycle for the company?

Accepted Answer

A)  4.5 months 
B)  1.5 months 
C)  2.5 months 
D)  0.5 months 
A)  4.5 months 
B)  1.5 months 
C)  2.5 months 
D)  0.5 months

One of the risks associated with holding large amounts of inventory is:

A company can limit the amount of credit allowed to customers in which of the following ways?

If two companies had the same amount of fixed assets and the same profit,the company with the lower amount of working capital would have a higher return on capital employed (ROCE)

The outsourcing of the management of receivables is known as:

A company buys goods on 2 months credit.Raw materials are converted into finished goods in approximately 1.5 months,and then typically sold 1 month later.Sales are on credit and customers typically take 1 month to pay for the goods. What is the Cash cycle for the company?

The Statement of Financial Position Balance Sheetand What It Tells Us

The Income Statement Profit and Loss Account

The Development of Financial Reporting

Ratios and Interpretation: a Straightforward Introduction

How the Stock Market Assesses Company Performance

Cash Flow Statements: Understanding and Preparation

Advanced Interpretation of Company and Group Accounts

Current Issues in Financial Reporting

Bookkeeping to Trial Balance

Trial Balance to Final Accounts

Financing a Business

Introduction to Management Accounting

Investment Appraisal

Budgetary Planning and Control

Absorption Costing

Marginal Costing and Decision-Making

Standard Costing and Variance Analysis

Incomplete Records

Filters

Exam 12: Management of Working Capital

One of the risks associated with holding large amounts of inventory is:

A company can limit the amount of credit allowed to customers in which of the following ways?

If two companies had the same amount of fixed assets and the same profit,the company with the lower amount of working capital would have a higher return on capital employed (ROCE)

The outsourcing of the management of receivables is known as:

A company buys goods on 2 months credit.Raw materials are converted into finished goods in approximately 1.5 months,and then typically sold 1 month later.Sales are on credit and customers typically take 1 month to pay for the goods. What is the Cash cycle for the company?

The Statement of Financial Position Balance Sheetand What It Tells Us

The Income Statement Profit and Loss Account

The Development of Financial Reporting

Ratios and Interpretation: a Straightforward Introduction

How the Stock Market Assesses Company Performance

Cash Flow Statements: Understanding and Preparation

Advanced Interpretation of Company and Group Accounts

Current Issues in Financial Reporting

Bookkeeping to Trial Balance

Trial Balance to Final Accounts

Financing a Business

Introduction to Management Accounting

Investment Appraisal

Budgetary Planning and Control

Absorption Costing

Marginal Costing and Decision-Making

Standard Costing and Variance Analysis

Incomplete Records

Filters