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II. Directions: Write TRUE if the statement is CORRECT; Write FALSE if the statement is INCORRECT. _1. Working capital is the same as net working capital. _2. The amounts needed to compute a company's working capital come from Income Statement. _3. The operating cycle for most companies will be longer than one year. 4. Accounts Receivable affects the working capital of a company. _5.Time as consideration is unimportant in inventory management. _6. Current assets should always be financed by current liabilities. _7. Account receivable is also known as notes receivable. _8. The financial manager of a firm is mostly interested in the company's available balance, not its book balance of cash. _9. In accounts receivable management, credit analysis is the process of determining the probability that customers will not pay. _10. Current asset is the asset that can be converted into cash within one

II. Directions: Write TRUE if the statement is CORRECT; Write FALSE if the statement is INCORRECT. _1. Working capital is the same as net working capital. _2. The amounts needed to compute a company's working capital come from Income Statement. _3. The operating cycle for most companies will be longer than one year. 4. Accounts Receivable affects the working capital of a company. _5.Time as consideration is unimportant in inventory management. _6. Current assets should always be financed by current liabilities. _7. Account receivable is also known as notes receivable. _8. The financial manager of a firm is mostly interested in the company's available balance, not its book balance of cash. _9. In accounts receivable management, credit analysis is the process of determining the probability that customers will not pay. _10. Current asset is the asset that can be converted into cash within one

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 5SEQ
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II. Directions: Write TRUE if the statement is CORRECT; Write FALSE if the statement is INCORRECT. _1. Working capital is the same as net working capital. _2. The amounts needed to compute a company's working capital come from Income Statement. _3. The operating cycle for most companies will be longer than one year. 4. Accounts Receivable affects the working capital of a company. _5.Time as consideration is unimportant in inventory management. _6. Current assets should always be financed by current liabilities. _7. Account receivable is also known as notes receivable. _8. The financial manager of a firm is mostly interested in the company's available balance, not its book balance of cash. _9. In accounts receivable management, credit analysis is the process of determining the probability that customers will not pay. 10. Current asset is the asset that can be converted into cash within one
Transcribed Image Text:II. Directions: Write TRUE if the statement is CORRECT; Write FALSE if the statement is INCORRECT. _1. Working capital is the same as net working capital. _2. The amounts needed to compute a company's working capital come from Income Statement. _3. The operating cycle for most companies will be longer than one year. 4. Accounts Receivable affects the working capital of a company. _5.Time as consideration is unimportant in inventory management. _6. Current assets should always be financed by current liabilities. _7. Account receivable is also known as notes receivable. _8. The financial manager of a firm is mostly interested in the company's available balance, not its book balance of cash. _9. In accounts receivable management, credit analysis is the process of determining the probability that customers will not pay. 10. Current asset is the asset that can be converted into cash within one
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