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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define working capital.
💡 Hint: Think about what kind of expenses a business has.
Question 2
Easy
What is the formula for calculating working capital?
💡 Hint: Remember how assets and liabilities are defined.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does working capital refer to?
- Funds for day-to-day operations
- Long-term investment
- Total assets
💡 Hint: Think about the expenses that occur each day.
Question 2
True or False? Low working capital can indicate a potential liquidity issue.
- True
- False
💡 Hint: Consider what happens when you don't have enough cash.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has current assets of $100,000 and current liabilities of $80,000. Calculate its working capital. How might this amount affect the company's operations?
💡 Hint: Use the formula we discussed!
Question 2
Consider a retail business that has declining sales during the winter season but high inventory costs. What strategies should it deploy to maintain strong working capital?
💡 Hint: Think about balancing expenses and income in varying market conditions.
Challenge and get performance evaluation