Business finance answer key

1. Working capital
2. Liquidity
3. Solvency
4. Inter business financing
5. Bad debts
6. Capital
7. Capacity
8. Character
9. Conditions
10. EOQ

Enumeration:

Forms of inventory

1. Raw materials
2. Work in process
3. Finished goods

Elements of cost of credit

1. Bad debts cost

2. Cost of invested funds
3. Administrative costs

2 ways in describing working capital

1. Gross working capital

2. Net working capital/working capital

Purpose of working capital

1. Replenishment of inventory
2. Provision for operating expenses
3. Support for credit sales
4. Provision of a safety margin

Sources of cash inflows

1. Cash sales
2. Collection of accounts receivable
3. Loans
4. Sales of assets
5. Ownership contribution
6. Advance from customers

Test III

1. INVENTORY MANAGEMENT
2. TRUE
3. FALSE
4. TRUE
5. Liquidity management
6. Est. uncollectible accounts
7. True
8. True
9. True
10. True