truth and false questions:

1.Cash that is held is working for the company.

2. Negative NWC indicates the company finances Long Term Assets with Current Assets.

3. A favorable CCP must be funded by external borrowing or by selling equity.

4. Current ratio less than 1 means company is liquid and solvent.

5.An increase in WCR indicates need for more external financing.

6. A low ratio of Current Assets to Current Libs equals low solvency.

7. A longer CCP indicates an increase in liquidity.

8.A favorable CCP means less need for external financing

9. A sale of product begins a new cash cycle.

10.Higher cash holdings tend to reduce the value of the stock price of the company.