Recent Lessons

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Quizzes

Create quizzes and tests automatically from your content using AI.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing Schools Business

Features Pricing Schools Business

16 Questions

8 Views

Working Capital Management Quiz

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What aspect of the business does the Debt-to-Equity Ratio indicate in financial management?

Efficiency

Profitability

Liquidity

Leverage (correct)

How is Working Capital calculated?

Current Assets - Current Liabilities (correct)

Current Liabilities - Current Assets

Total Liabilities - Total Assets

Total Assets - Total Liabilities

What does the Quick Ratio measure in working capital management?

Liquidity (correct)

Efficiency

Profitability

Solvency

Which formula represents the Inventory Turnover Ratio calculation?

Cost of Goods Sold / Average Inventory (A) Signup and view all the answers

What does DSO stand for in the context of working capital?

Days Sales Outstanding (B) Signup and view all the answers

Which formula is used to calculate the Operating Cash Flow Ratio?

Operating Cash Flow / Net Income (A) Signup and view all the answers

What is the correct formula for the Cash Conversion Cycle?

DSO + DIO - DPO (D) Signup and view all the answers

What is the primary focus of the Quick Ratio in working capital management?

Liquidity (B) Signup and view all the answers

In the formula for the Quick Ratio, what does 'Current Assets - Inventory' represent?

Current Assets (C) Signup and view all the answers

How is the Inventory Turnover Ratio calculated?

Cost of Goods Sold / Average Inventory (C) Signup and view all the answers

Which formula correctly represents the Cash Conversion Cycle calculation?

DSO + DIO - DPO (B) Signup and view all the answers

How is Working Capital typically calculated?

Current Liabilities - Current Assets (A) Signup and view all the answers

What does the Debt-to-Equity Ratio mainly indicate in financial management?

Leverage (D) Signup and view all the answers

In working capital analysis, which aspect does the Operating Cash Flow Ratio capture?

Operating Cash Flow / Current Liabilities (A) Signup and view all the answers

'Current Liabilities / (Current Assets - Inventory)' is used in which financial ratio calculation?

'Current Assets - Current Liabilities' (B) Signup and view all the answers

What does the Quick Ratio measure in working capital management?

Liquidity. (D) Signup and view all the answers

Study Notes

Working Capital Management

The Quick Ratio measures liquidity in working capital management.
The formula for the Quick Ratio is: (Current Assets - Inventory) / Current Liabilities.

Key Concepts

DSO stands for Days Sales Outstanding.
The Inventory Turnover Ratio is calculated as: Cost of Goods Sold / Average Inventory.
The Cash Conversion Cycle is calculated as: DSO + DIO - DPO.
Working Capital is calculated as: Current Assets - Current Liabilities.

Financial Management

The Operating Cash Flow Ratio is calculated as: Operating Cash Flow / Current Liabilities.
The Debt-to-Equity Ratio indicates leverage in financial management.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of working capital management with this quiz covering topics such as Quick Ratio, formulas, and Days Sales Outstanding (DSO). See if you can identify what the Quick Ratio measures and calculate it correctly.