( Best 100+ )MANAGENT ACCOUNTING Question And Answers

by Mr. DJ

MANAGENT ACCOUNTING Question And Answers

  1. What are the types of working capital?

Answer:-

  • Gross Working Capital (GWC)
  • Net Working Capital (NWC) or Working Capital
  • Permanent / Fixed Working Capital
  • Temporary / Variable Working Capital.
  1. Mention five short term sources of working capital?

Answer:- Tax Provisions

Bank Overdraft

Dividend Provisions

Trade Deposits

Public Deposits

Short Term Loans

  1. Mention five long term sources of working capital?

Answer:- Share capital

Debentures

Retained profits

Long term loans

Depreciation

  1. What is net working capital?

Answer:- Net working capital is the aggregate amount of all current assets and current liabilities. It is used to measure the short-term liquidity of a business, and can also be used to obtain a general impression of the ability of company management to utilize assets in an efficient manner.

  1. What is operating cycle?

Answer:- The operating cycle is the average period of time required for a business to make an initial outlay of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods.

  1. Give the formula for finding working capital using operating cycle.

Answer:- Working capital using operating cycle= Cogs * operating cycle/ 360or 365 days + desired cash balance.

  1. What are the methods of estimating working capital requirements?

Answer:- Percentage of sales method, regression analysis, cash forecasting, operating cycle method, projected balance sheet method.

  1. Define budget.

Answer:- Budget is an estimate of income and expenditure for a set period of time.

  1. What is budgeting?

Answer:- Budgeting is the process of preparing detailed projections of future amounts in form of budgets.

  1. What is budgetary control?

Answer:- Budgetary control is a process for managers to set financial and performance goals with budgets, compare the actual results, and adjust performance, as it is needed.

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