🎧 New: AI-Generated Podcasts Turn your study notes into engaging audio conversations. Learn more

Mastering Working Capital
5 Questions
0 Views

Mastering Working Capital

Created by
@BetterAzurite

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is one way a company can reduce its short-term debts to improve working capital?

  • Increase inventory reserves
  • Spend more internally
  • Extend credit to more customers
  • Avoid taking on unnecessary debt (correct)
  • Which of the following actions can improve a company's working capital?

  • Extending credit to customers (correct)
  • Increasing short-term debts
  • Reducing current assets
  • Spending more externally
  • How are cash flow and working capital related?

  • They are independent variables
  • Working capital is a component of cash flow
  • Cash flow is a component of working capital (correct)
  • They have no relationship
  • What is one way a company can improve its working capital by managing its current assets?

    <p>Prepaying expenses</p> Signup and view all the answers

    Why should a company be mindful of spending both externally and internally to improve working capital?

    <p>To avoid unnecessary borrowing</p> Signup and view all the answers

    More Quizzes Like This

    Use Quizgecko on...
    Browser
    Browser