Class 12 Finance Working Capital and Current Assets Management Notes and Important Questions
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Important Questions
Explain the features of investment decision.
A company has a receivable collection period of 39 days and payable deferral period of 30 days. Inventory turnover ratio is 5 times. (Assume 365 working days in a year.)
Required:
a) Inventory Conversion Period (ICP)
b) Cash Conversion Cycle (CCC)
A company has annual sales of Rs. 8,00,000 with an inventory turnover ratio of 8 times. It has receivable collection period of 24 days and a payable deferral period of 18 days. (Assume 340 working days in a year.)
Required:
a) Inventory Conversion Period
b) Cash Conversion Cycle
State any two determinants of working capital.
This page covers Working Capital and Current Assets Management, chapter 8 of 10 in the Class 12 Finance syllabus set by the National Examination Board (NEB). 4 important questions for this chapter are available, each with a full solution.
For subjects like this one, examiners tend to reuse similar question patterns year to year — comparing this chapter's important questions against recent old NEB papers is one of the more efficient ways to revise.