Net Working Capital

A detailed illustration of financial statements with arrows pointing to current assets and liabilities, depicting net working capital in an educational style.

Mastering Net Working Capital

Test your knowledge on net working capital and its importance in financial management. This quiz will cover key concepts, definitions, and applications associated with working capital.

  • 10 engaging questions
  • Multiple choice format
  • Learn more about financial statements and their components
10 Questions2 MinutesCreated by CalculatingGuru507
Net working capital is ..... Net working capital
The same as
Different from
The operating cycle for most companies will be .... Than one year
Shorter
Longer
The amounts needed to compute a company's working capital come from which of the following financial statements?
Income statement
Balance sheet
More than one will be needed
Is it true or false that current liabilities are listed on a company's balance sheet in the order in which they need to be paid?
True
False
In what order will a company's current assets appear on a classified balance sheet?
Alpjabetical order
Company's choice
Largest to smallest
Order of liqidity
How will the total amount of a company's working capital change when a $10,000 account receivable is collected?
The total increases by 10 000$
The total decreases by 10 000$
The total remains the same
How will the total amount of a company's working capital change when the company pays $8,000 of its accounts payable?
The total increases by 8 000
The total remains the same
The total decreases by 8 000
If a company's accounts payable decreased $16,000 during the year, will the $16,000 appear as a positive or negative amount on the statement of cash flows?
Negative
Positive
If a company's accounts receivable increased by $23,000 during the year, will the $23,000 appear as a positive or negative amount on the statement of cash flows?
Positive
Negative
NWC is
Current Assets + Current Liabilities
Current Assets - Current Liabilities
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