SU MBA6010 Week 5 Knowledge Check Latest 2019 JUNE

MBA6010 Managerial Finance

Week 5 Knowledge Check

Question 1 A basic premise in finance is to collect cash as soon as possible and delay payments as long as possible.

Question 1 options:

True

False

Question 2 Holding significant cash balances is an important tool in corporate financial management.

Question 2 options:

True

False

Question 3 Working capital can be defined as current assets less current liabilities.

Question 3 options:

True

False

Question 4 A cycle of cash inflows and outflows is known as the operating cycle.

Question 4 options:

True

False

Question 5 The time it takes for a company to buy raw materials, convert them into saleable products, and then sell those products is the inventory conversion period.

Question 5 options:

True

False