NWC quiz 2

A professional and engaging infographic illustrating liquidity ratios, including current ratio and quick ratio, with icons representing financial statements and cash flow processes.

NWC Liquidity Quiz

Test your knowledge on the important financial ratios used to assess liquidity and working capital in businesses. This quiz will challenge you on key concepts that are essential for understanding a company's financial health.

Topics covered:

  • Current Ratio
  • Quick Ratio
  • Accounts Receivable Management
  • Cash Flows
10 Questions2 MinutesCreated by CalculatingCash123
Which of the following amounts will be used in both the calculation of the current ratio and the quick ratio?
The Total Amount Of Current Assets
The Total Amount Of Current Liabilities
The Total Amount Of Assets
Which of the following is another name for the quick ratio?
Acid Test Ratio
Current Ratio
Working Capital Ratio
Which is a better indicator of a company's liquidity?
Current Ratio
Quick Ratio
Which of the following will indicate the specific accounts receivable that have not been collected?
Aging Of Accounts Receivable
Current Ratio
Sales Journal
Which of the following uses amounts from more than one financial statement?
Current Ratio
Inventory Turnover Ratio
Working Capital
A company received a $5,000 invoice for consulting services it had received. The company chooses to use its business credit card instead of paying cash. Under the accrual method of accounting, will the use of the credit card result in the company having more working capital?
Yes
No
The section of the statement of cash flows that shows the adjustments to most of a company's working capital accounts is the cash flows from __________ activities.
Financing
Investing
Operating
Current assets, which represent the portion of investment that circulates from one form to another in the ordinary conduct of business
Working capital
Current ratio
Golden rule
The time from the beginning of the production process to collection of cash from the sale of the finished product.
Silver rule
Operating cycle
Net working capital
The firm's minimum requirements for extending credit to a customer.
Credits standards
Operating cycle
Reorder point
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