fin320r1week2selfassesmentquestions

fin320r1week2selfassesmentquestions - c. Sell some stock d....

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FIN/320 Self-Assessment Questions Week Two : Working Capital Management 1. Costs that decrease when the level of investment in current assets increases are carrying costs True False 2. Float is the difference between book cash and bank cash. True False 3. The amount of a firm’s net working capital is a. Cash + Other Current Assets b. (Cash + Other Current Assets) – Current Liabilities c. (Cash + Current Liabilities) – Other Current Assets d. Cash – Current Liabilities e. None of the above 4. Which of the following events decrease a firm’s cash? a. Acquire a long-term loan b. Acquiring a short-term loan
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Unformatted text preview: c. Sell some stock d. Repurchase stock that has already been sold e. Liquidating inventory 5. A firm that has an inventory turnover of 3.5 times has an inventory period of a. 100 days b. 101.6 days c. 102.7 days d. 103.5 days e. 104.3 days 6. The need to hold on to cash in order to take advantage of unexpected investment opportunities is and example of the ____________________ for holding cash. a. Speculative motive b. Precautionary motive c. Marketable security motive d. Transaction motive e. Windfall effect...
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This note was uploaded on 12/29/2009 for the course FIN 320 ASDFI taught by Professor Asdf during the Spring '09 term at University of Phoenix.

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