Working capital is O total current assets. total assets. current assets less inventory. O cash and investments. marketable securities and investments.
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- working capital is defined as a. total current assets minus total current liabilities b. establishing progress payments to cover cash flow c. all debts and obligation owed but the business d. current assets minus current liabilitiesOut of which equation is NOT CORRECT ? Please remember to select "WHICH IS NOT CORRECT" Select one: a. Capital = Total Assets - Total Liabilities b. Total Assets = Tangible Assets + Intangible Assets + Investments + Current Assets c. Total Liabilities = Total Assets - Shareholder's funds - Capital d. Owner's equity = Share capital + Reserve and SurplusNetworking capital refers to the A) firms investment in total assets B) firms' investment in current assets C) difference between the firm's current assets and its current liabilities D) Difference between the firms total assets and its total liabilities
- LO1 - Describe the specific elements of the balance sheet (assets, liabilities, and owners’ equity), and prepare a balance sheet with assets and liabilities properly classified into current and noncurrent categories. A balance sheet contains the following classifications: (a) Current assets (b) Investments (c) Property, plant, and equipment (d) Intangible assets (e) Other noncurrent assets (f) Current liabilities (g) Long-term debt (h) Other noncurrent liabilities (i) Capital stock (j) Additional paid-in capital (k) Retained earnings Indicate by letter how each of the following accounts would be classified. Place a minus sign (-) for all accounts representing offset or contra balances. Discount on Bonds Payable Stock of Subsidiary Corporation 3.12% Bonds Payable (due in six months) U.S. Treasury Bills Income Taxes Payable Sales Taxes Payable Estimated Claims under Warranties for Service and Replacements Par Value of Stock Issued and Outstanding Unearned Rent Revenue (six months…A capital expenditurea. adds to an asset.b. is expensed immediately.c. is a credit like capital (equity).d. records additional capital.The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capital
- b) What is the total capital required for both off- and on-balance-sheet assets?4. _______ is the act of paying out includes money paid out to run abusiness, cash expenditure and etc.A. Disbursements C. PaymentB. Issuance of capital D. PayoutWhich of the following formulas will correctly calculate Net Working Capital? A. Current assets + current liabilities B. Free cash flow + depreciation expenses C. Incremental earnings – capital purchases D. Current assets – current liabilities
- Net Working Capital is equal to a. Current Assets - Non Current Liabilities b. Current Assets - Current Liabilities c. Non Current Assets - Current Liabilities d. Non Current Assets - Non Current Liabilities_______ is comprised of operating cash flow, capital spending, and additions to NWC A. Op cash flow B. Net fixed assets C. Cash flow to shareholders D. Free cash flow E. Cash flow from assetsNet Working Capital is equal to a. Non Current Assets - Current Liabilities b. Non Current Assets - Non Current Liabilities c. Current Assets - Non Current Liabilities d. Total Current Assets - total Current Liabilities