İŞLETME FİNANSI I - Deneme Sınavı - 1

The main source of financing secured internally has been by means of Accruals. The major accrual items are wages and taxes which in turn create obligations to payments to the employees and to the government.

According to the hedging (matching) policy of working capital management, permanent current assets and fixed assetsare financed by long-term financing sources.

Net working capital refers to current assets minus current liabilities

Gross working capital refers to total current assets of a company. Current assets include cash, marketable securities, accounts receivabl, inventory, accrued expenses.

Policies for financing of working capital are divided into three categories as given in Figure 8.11. Firstly, by a conservative financing policy, the firm mainly utilizes the long term funds. Secondly, by an aggressive financing policy, the firm mainly utilizes the short term funds, and third by a moderate financing policy, the firm mainly utilizes the short and long term funds almost equally

Cash conversion cycle is : collection period - inventory period - payables period.

The working capital policy of a company should focus on maintaining sufficient liquidity.

Generally, it can be said that the longer the cash conversion cycle, the greater the company’s need for liquidity.The payables payment time and cash conversion cycle is inversely related.

The procedure of comparing two sets of related cash/ bank accounts or records gathered from either internal systems or from the banks is referred to as ...........

Stock out cost is an item categorized as shortage costs. All other costs are categorized as carrying costs.

Deafult cost related with maintaing receivables. All other costs are related with invesntory management.