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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is working capital?
💡 Hint: Think about current assets and liabilities.
Question 2
Easy
List two components of working capital.
💡 Hint: Consider items that affect cash flow.
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 is the formula for calculating working capital?
- Current Assets - Current Liabilities
- Current Liabilities - Current Assets
- Total Assets - Total Liabilities
💡 Hint: Remember the fundamental formula for liquidity.
Question 2
True or False: Working capital is only important for large businesses.
- True
- False
💡 Hint: Consider the day-to-day operations.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has current assets totaling $150,000 and current liabilities of $100,000. Calculate the working capital and discuss its implications for the company's operations.
💡 Hint: Consider the impact of having both surplus and deficit working capital.
Question 2
Discuss a scenario where high accounts receivable could cause working capital issues. What strategies would you recommend to address these problems?
💡 Hint: Reflect on customer payment behaviors and impacting cash flow.
Challenge and get performance evaluation