Match items of List – I with the items of List – II. List-IList-II (a) Working capital (i) used to hold…
Gross Working capital refers to current assets (a-iii); the Cash conversion cycle equals inventory conversion period + receivables collection period - payables deferral…
Choose your answer
Match items of List – I with the items of List – II.
| List-I | List-II |
|---|---|
| (a) Working capital | (i) used to hold down inventory costs |
| (b) Cash conversion cycle | (ii) the practice of purchasing components |
| (c) Just-in-time system | (iii) current assets |
| (d) Outsourcing | (iv) inventory conversion period + receivables collection period – payables deferral period |
Answer and explanation
Correct answer B
Gross Working capital refers to current assets (a-iii); the Cash conversion cycle equals inventory conversion period + receivables collection period - payables deferral period (b-iv); a Just-in-time (JIT) system is used to hold down inventory carrying costs (c-i); and Outsourcing is the practice of purchasing components from external vendors (d-ii), matching -(iii), (b)-(iv), (c)-(i), (d)-(ii).
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UGC NET Management