Working Capital Practice Questions
For students, this article will be beneficial becuase students can find some practice questions, and can get answers by just directly messaging at hira@accountingdrive.com.
๐๐ฒ๐ฉ๐๐ฌ ๐จ๐ ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ- ๐๐ซ๐จ๐ฌ๐ฌ ๐ฏ๐ฌ ๐๐๐ญ ๐๐, ๐๐๐ซ๐ฆ๐๐ง๐๐ง๐ญ ๐ฏ๐ฌ ๐๐๐ฆ๐ฉ๐จ๐ซ๐๐ซ๐ฒ ๐๐.
Looking puzzled! Why there are too many different types of working capital? why they are categorized so broadly?ย & most importantly
๐๐จ๐ฐ ๐ญ๐จ ๐๐๐ฅ๐๐ฎ๐ฅ๐๐ญ๐ ๐๐๐ฌ๐ก ๐๐จ๐ง๐ฏ๐๐ซ๐ฌ๐ข๐จ๐ง ๐๐ฒ๐๐ฅ๐ ๐ข๐ง ๐ ๐๐๐ฌ๐ฒ ๐๐ญ๐๐ฉ๐ฌ.
Calculate cash conversion cycle in 3Steps. Step#1 Calculate Avg. Inventory, A/R and A/P. Step#2 Calculate DIO, DSO, DPO. Step#3 Calculate CCC.
๐๐จ๐ฐ ๐๐จ ๐๐ก๐๐ง๐ ๐๐ฌ ๐ข๐ง ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐ฆ๐ฉ๐๐๐ญ ๐๐๐ฌ๐ก ๐ ๐ฅ๐จ๐ฐ?
The “impact” relates to how the cash flow has changed when there is positive and negative fluctuation in working capital.
Cash Flow Statement- Format With Solved Example
Cash Flow Statement helps to track cash inflow and outflow. CFS has three main parts: operating, investing, and financing activities.
Cash Flow Statement- Format With Solved Example Read More ยป
๐ ๐๐๐ฌ๐ฒ ๐๐ญ๐๐ฉ๐ฌ ๐๐จ๐ซ ๐๐๐ฅ๐๐ฎ๐ฅ๐๐ญ๐ข๐ง๐ ๐๐ก๐๐ง๐ ๐s ๐ข๐ง ๐๐๐ญ ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ
Calculate WC for the current and previous year. Calculate changes in Net Working Capital by subtracting Previous WC from Current WC.
Working Capital Vs Current Ratio: Difference Explained With An Example
Working Capital is the leftover amount after paying operating expenses whereas the Current Ratio determines the efficiency of current assets over current liabilities.ย
Working Capital Vs Current Ratio: Difference Explained With An Example Read More ยป
๐ ๐๐๐ฌ๐ญ ๐๐๐ฒ๐ฌ ๐ญ๐จ ๐ ๐๐ญ ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ: ๐๐ก๐ ๐๐ซ๐ ๐๐ง๐ ๐ข๐ฌ ๐๐ฆ๐๐ณ๐ข๐ง๐ .
5 best ways to get working capital are Trade Credits, Invoice Factoring, Invoice Financing, Line of Credit, and Business Credit Cards.
๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐ง๐ ๐๐๐ฌ๐ก ๐๐จ๐ง๐ฏ๐๐ซ๐ฌ๐ข๐จ๐ง ๐๐ฒ๐๐ฅ๐: ๐๐๐ฅ๐๐ญ๐๐ ๐จ๐ซ ๐๐ข๐๐๐๐ซ๐๐ง๐ญ ๐๐๐ซ๐ฆ๐ฌ?
Working Capital and Cash Conversion Cycle are distinct terms and work together under the operating mechanism because of the same major items.
๐ ๐๐๐ฌ๐ญ ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐ญ๐ซ๐๐ญ๐๐ ๐ข๐๐ฌ: ๐๐จ๐ฐ ๐ญ๐จ ๐๐๐ง๐๐ ๐ ๐๐๐๐๐๐ญ๐ข๐ฏ๐๐ฅ๐ฒ
Five effective working capital management strategies are Cash Management, Inventory Management, Debtor’s Management, Creditor’s Management, and Short-term Debt Management.
๐๐๐ ๐๐ญ๐ข๐ฏ๐ ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ ๐จ๐ซ ๐๐จ๐ฌ๐ข๐ญ๐ข๐ฏ๐ ๐๐จ๐ซ๐ค๐ข๐ง๐ ๐๐๐ฉ๐ข๐ญ๐๐ฅ: ๐๐ก๐ข๐๐ก ๐ข๐ฌ ๐๐๐ญ๐ญ๐๐ซ?
While calculating working capital (WC), have you ever found a negative working capital? Or confused between positive working capital or