Correct Answer:
C. Current assets minus current liabilities
It measures short-term liquidity.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
Net working capital is calculated as:
Related MCQs
Under the weighted average cost method, the cost per unit is calculated as:
A.
The cost of the latest purchase
B.
The cost of the oldest purchase
C.
Total cost of goods available divided by total units available
D.
The selling price less profit
Correct answer is:
C. Total cost of goods available divided by total units available
Do you agree with this answer?
Cost-benefit analysis of public projects compares:
A.
Only the private profits
B.
Social costs and social benefits of the project
C.
Only the initial costs
D.
Tax revenue with expenditure of the entire government
Correct answer is:
B. Social costs and social benefits of the project
Do you agree with this answer?
Horizontal distribution under the NFC award refers to the sharing of resources:
A.
Between the Federation and the provinces
B.
Between public and private sectors
C.
Among the provinces
D.
Between rural and urban areas only
Correct answer is:
C. Among the provinces
Do you agree with this answer?
Operating income is Rs. 200,000, invested assets are Rs. 1,000,000 and the required rate of return is 12%. Residual income is:
A.
Rs. 120,000
B.
Rs. 80,000
C.
Rs. 200,000
D.
Rs. 320,000
Correct answer is:
B. Rs. 80,000
Do you agree with this answer?
Contribution margin is Rs. 120,000 and operating income is Rs. 30,000. The degree of operating leverage is:
A.
0.25
B.
3
C.
90,000
D.
4
Correct answer is:
D. 4
Do you agree with this answer?
Process costing is most suitable for:
A.
Continuous mass production of homogeneous products
B.
Building a bridge to a customer's design
C.
Producing a single custom machine
D.
Repair of vehicles
Correct answer is:
A. Continuous mass production of homogeneous products
Do you agree with this answer?
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