Fixed Capital and Working Capital

Q.

What is meant by working capital?

Q.

Current assets are those assets which get converted into cash

(a) within six months

(b) within one year

(c) between one year and three years

(d) between three and five years

Q.

Which of the following are factors affecting the requirement of working capital?

1. Length of operating cycle

2. Scale of operation

3. Business cycle fluctuations

4. All of the above

Q.

Is Trademark a Fixed Asset?

Q.

State any four factors which affect the working capital requirements of a company.

Q.

___ refers to the investment in all the current assets such as cash, bills receivable, prepaid expenses, inventories, etc. These current assets get converted into cash within a year.

1. Gross working capital

2. Net working capital

3. Both A and B

4. None of these

Q.

Is the stock in trade a fixed asset?

Q.

Dabur India has decided to increase credit limit and duration of credit to its customers to boost its sales. Name the type of decision involved.

1. Working capital

2. Fixed capital

Q.

Define a 'current asset'. Give four examples of such assets.

Q.

Why Are Intangible Assets Important?

Q. What do you mean by capital structure?

Q. Money invested by a business in assets for less than a year is known ascapital.

1. Working
2. Fixed
3. Current
4. Liquid

Q. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act in ________.

1. 2005
2. 2008
3. 2006
4. 2004

Q. Dabur India has decided to increase credit limit and duration of credit to its customers to boost its sales. Name the type of decision involved.

Q. Assets describe what is owned by the business.

1. False
2. True

Q. Amount invested by the owner in business is known as capital.

1. True
2. False

Q. Stock bought in by owner will be treated as current asset.

1. True
2. False

Q. Before amendment in the MSME Act, a micro enterprise engaged in providing service where the investment in equipment does not exceed Rs. _________.

1. 5 lakh
2. 20 lakh
3. 10 lakh
4. 15 lakh

Q. is controlling the end of management functions cycle give reason in support of your answer

Q. why is retained earnings not the cheapest source of finance ?

Q.

Is A Fictitious Asset - Commerce Q&A

Q. Explain the following factors affecting working capital requirements:-
(i) Level of competition
(ii) Seasonal factors
(iii) Production cycles.

Q. State why the working capital needs for a 'Service industry' are different from that of a Manufacturing industry.

Q. A Business who wants to start a manufacturing concern, approaches you to suggest him whether the following manufacturing concern would required large or small working capital:
(a) Bread (b) Coolers (c) Sugar (d) Motor car (e) Furniture manufactured against specific orders
(f) Locomotives

Q. Explain why the requirements of fixed capital for a trading concern are different from that of a manufacturing organisation.