1.In deciding the optimal level of current assets for a firm, its management is concerned with...

 

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1.In deciding the optimal level of current assets for a firm, its management is concerned with a tradeoff between Short-term and long-term borrowing Profitability and risk Equity and debt Liquidity and risk 2.In the context of receivables management, delinquency refers to 3.The ordering cost of inventory O O O O the possibility that a customer will not pay within the discount period. the possibility that a customer will not pay for its purchases from the company. the possibility that a customer will pay only partially for its purchases from the company. the possibility that a customer may not pay for its purchases from the company. O O O O First falls and then rises as the order size increases Decreases with the increase in the order size Does not change with the size of the order Increases with the increase in the order size 4. Goods in transit exists when The lead time is less than frequency of placing orders The lead time is equal to frequency of placing orders The order size is less than the safety stock The lead time is greater than the frequency of placing orders 5. Inventories meant to be o Bought, not sold O Bought, not used O Sold, not bought 0 Sold, not used T 6.A company has calculated the economic order quantity for one of its inventory items to be 35,000 units. The inventory costs Tk.25 per unit. The percentage carrying cost is 20 percent, while the desired safety stock of 5,000 is maintained. What is the average, value of the inventory that can be available at any time? 0 Tk.562,500 O Tk. 125,750 O Tk.200,000 O Tk. 1,000,000 1.In deciding the optimal level of current assets for a firm, its management is concerned with a tradeoff between Short-term and long-term borrowing Profitability and risk Equity and debt Liquidity and risk 2.In the context of receivables management, delinquency refers to 3.The ordering cost of inventory O O O O the possibility that a customer will not pay within the discount period. the possibility that a customer will not pay for its purchases from the company. the possibility that a customer will pay only partially for its purchases from the company. the possibility that a customer may not pay for its purchases from the company. O O O O First falls and then rises as the order size increases Decreases with the increase in the order size Does not change with the size of the order Increases with the increase in the order size 4. Goods in transit exists when The lead time is less than frequency of placing orders The lead time is equal to frequency of placing orders The order size is less than the safety stock The lead time is greater than the frequency of placing orders 5. Inventories meant to be o Bought, not sold O Bought, not used O Sold, not bought 0 Sold, not used T 6.A company has calculated the economic order quantity for one of its inventory items to be 35,000 units. The inventory costs Tk.25 per unit. The percentage carrying cost is 20 percent, while the desired safety stock of 5,000 is maintained. What is the average, value of the inventory that can be available at any time? 0 Tk.562,500 O Tk. 125,750 O Tk.200,000 O Tk. 1,000,000

Answer rating: 100% (QA)

1 d Liquid ity and risk The trade off between liquidity and risk arises because a firm can increase its liquidity by holding more cash but this also e... View the full answer