48.

Which ratio would you rely upon the most in order to measure the overall effectiveness of management?

Select one:

a. Inventory turnover

b. Current ratio

c. Return on assets

d. Leverage ratio

49.

Managing the relationship between current assets and current liabilities of the firm in order to improve the flow of funds is called ________.

Select one:

a. the business operating cycle

b. working capital management

c. the production cycle

d. the cash conversion cycle

50.

The summarized statement of financial position for PPZ Sdn Bhd as follow:

Non-current assets RM600,000

Current Assets RM450,000

Total Assets RM1,050,000

Equity RM450,000

Non-current Liability RM -

Current Liability RM600,000

Total Liability & Equity RM1,050,000

Identify the working capital approach applied by PPZ Sdn Bhd.

Select one:

a. Aggressive Approach

b. None of the above

c. Conservative Approach

d. Hedging Approach

52.

The ________ begins at the time a firm first starts to make a product and lasts until the time the customer buys the product.

Select one:

a. business operating cycle

b. production cycle

c. cash conversion cycle

d. accounts receivable cycle