Assertion (A): The management of working capital refers to the management of current assets and current liabilities.
Reason (R): The major thrust is on the management
of current assets; because current liabilities arise in the context of current assets.
A. Both (A) and (R) are incorrect
B. (A) is correct, but (R) is incorrect
C. Both (A) and (R) are correct
D. (A) is incorrect, but (R) is correct
Answer: Option C
This Question Belongs to Commerce >> Business Finance
The appropriate ratio for indicating liquidity crisis is
A. Operating ratio
B. Sales turnover ratio
C. Current ratio
D. Acid test ratio
A. Net present value method
B. Internal rate of return method
C. Profitablity index method
D. None of the above
A. a-4, b-3, c-1, d-2
B. a-3, b-4, c-1, d-2
C. a-4, b-3, c-1, d-2
D. a-3, b-2, c-4, d-1
Which one of the following assumptions is not included in the James E. Walter Valuation model?
A. All financing by retained earnings only
B. No change in the key variables such as EPS and DPS
C. The firm has finite life
D. All earnings are either distributed as dividends or invested internally immediately
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