1. Once we define working capital as current assets, it can be further classified according to
2. Indicate the incorrect statement
(i) Credit risk is a loss on account of a default of repayment of a loan.
(ii) Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.
(iii) Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.
(iv) Hedging risk for a long position is accomplished by taking a short position and vice versa.
(i) Credit risk is a loss on account of a default of repayment of a loan.
(ii) Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.
(iii) Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.
(iv) Hedging risk for a long position is accomplished by taking a short position and vice versa.
3. Which technique is common used to estimate the cash flow in multinational capital budgeting?
4. Which of the following is not a type of financial lease arrangement?
5. Interim cash inflows are reinvested at a rate of return equal to the internal rate of return is the built-in-mechanism for
6. Hedging in the futures market
7. When interest rates fall, a bank perfectly hedging its portfolio of treasury secure futures market
8. A profitability index (PI) of .95 for a project means
9. Which of the following is false? Companies repurchase their own shares:
10. Arrange the following in chronological order about the events of operating cycle.
1. Conversion of accounts receivable into cash.
2. Conversion of finished goods into accounts receivable.
3. Conversion of raw materials into work-in-process.
4. Conversion of work-in-process into finished goods.
1. Conversion of accounts receivable into cash.
2. Conversion of finished goods into accounts receivable.
3. Conversion of raw materials into work-in-process.
4. Conversion of work-in-process into finished goods.
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