Free Financial CABM Exam Questions (page: 11)

Target levels for each category of current assets and how current assets will be financed are the firm's basic policies for:

  1. Net working capital
  2. Working capital policy
  3. Strategic policy decisions
  4. Working capital management

Answer(s): B



Working capital management involves management of the current assets and the current liabilities of a firm.

  1. True
  2. False

Answer(s): A



The average length of time required converting materials into finished goods and then to sell those goods is called:

  1. Inventory conversion period
  2. Cash conversion cycle
  3. receivables collection period
  4. selling goods duration

Answer(s): A



The average length of time between the purchase of raw materials and labor and the payment of cash for them is called:

  1. Accounts payable period
  2. Capital investment cycle
  3. Payable deferral period
  4. Purchase goods duration

Answer(s): C



The formula to calculate the Cash conversion cycle is:

  1. Cash Conversion Cycle = (Cash conversion period) + (Receivables conversion period) ­ (Payable deferral period)
  2. Cash Conversion Cycle = (Inventory conversion period) + (payables conversion period) ­ (receivables deferral period)
  3. Cash Conversion Cycle = (Receivables conversion period) + (Payable deferral period)
    - (Inventory conversion period)
  4. Cash Conversion Cycle = (Inventory conversion period) + (Receivables conversion period) ­ (Payable deferral period)

Answer(s): D



Viewing page 11 of 72
Viewing questions 51 - 55 out of 354 questions



Post your Comments and Discuss Financial CABM exam prep with other Community members:

CABM Exam Discussions & Posts