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If you have difficulty answering the following questions, learn more about this topic by reading our Working Capital and Liquidity (Explanation).
Working capital is __________ net working capital.
The amounts needed to compute a company's working capital come from which of the following financial statements?
The operating cycle for most companies will be __________ than one year.
In what order will a company's current assets appear on a classified balance sheet?
Is it true or false that current liabilities are listed on a company's balance sheet in the order in which they need to be paid?
How will the total amount of a company's working capital change when a $10,000 account receivable is collected?
How will the total amount of a company's working capital change when the company pays $8,000 of its accounts payable?
How will a company's liquidity change when some of its products are sold from inventory?
Which of the following amounts will be used in both the calculation of the current ratio and the quick ratio?
Which of the following is another name for the quick ratio?
Which is a better indicator of a company's liquidity?
Which of the following will indicate the specific accounts receivable that have not been collected?
Which of the following uses amounts from more than one financial statement?
A company received a $5,000 invoice for consulting services it had received. The company chooses to use its business credit card instead of paying cash. Under the accrual method of accounting, will the use of the credit card result in the company having more working capital?
The section of the statement of cash flows that shows the adjustments to most of a company's working capital accounts is the cash flows from __________ activities.
Does an amount in parentheses on the statement of cash flows (SCF) indicate that the amount described was favorable or unfavorable for the company’s cash balance and/or liquidity?
If a company's accounts receivable increased by $23,000 during the year, will the $23,000 appear as a positive or negative amount on the statement of cash flows?
If a company's accounts payable decreased $16,000 during the year, will the $16,000 appear as a positive or negative amount on the statement of cash flows?
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