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Commerce- Capital fixed and working MCQs and Answers

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Multiple choice type questions and their answers from the chapter Fixed and Working capital

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Grade: XII

Subject: COMMERCE

Unit Number: 2 Unit Name: Financing
Topic Name: Capital- Fixed and
Working


Question 1.
The major current assets are _____
(a) cash and marketable securities
(b) accounts receivable (debtors)
(c) inventory (stock)
(d) All of the above
Answer: (d) All of the above


Question 2.
The basic current liabilities are _____
(a) accounts payable and bills payable
(b) bank overdraft
(c) Outstanding expenses.
(d) All of the above

Answer: (d) All of the above


Question 3.
There are two concepts of working capital – gross and ____
(a) Zero
(b) Net
(c) Cumulative
(d) distinctive

Answer: (b) Net


Question 4.
______ working Capital refers to the firm’s investment in current assets.
(a) Zero
(b) Net
(c) Gross
(d) Distinctive

Answer: (c) Gross

, Question 5.
______ working capital refers to the difference between current assets and
current liabilities.
(a) Zero
(b) Net
(c) Gross
(d) Distinctive

Answer: (b) Net


Question 6.
Investment in current assets should be _____
(a) just adequate
(b) more
(c) less
(d) maximum
Answer: (a) just adequate


Question 7.
On the basis of _____, working capital is classified as gross working capital
and net working capital.
(a) concept
(b) time
(c) future
(d) work
Answer: (a) concept


Question 8.
On the basis of _____, working capital may be classified as: 1) Permanent or
fixed working capital. 2) Temporary or variable working capital.
(a) concept
(b) time
(c) future
(d) work
Answer: (b) time


Question 9.
Name the concept which is concerned with optimal procurement as well as
usage of finance

(a) Capital structure

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Subjects

  • commerce
  • commerce test
  • isc
  • mcqs
  • commerce capital
  • fixed capital
  • working capital
  • commerce worksheet

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