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प्रश्न
Liberal credit policy creates a problem of bad debts.
पर्याय
True
False
उत्तर
This statement is True.
Explanation:
If the firm does not get a credit facility for purchases but adopts a liberal credit policy for its sales, it requires more working capital. On the other hand, if credit terms of purchases are favourable and terms of credit sales are less liberal, then the cash requirement will be less.
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संबंधित प्रश्न
Write a word or a term or a phrase which can substitute the following statement.
Capital needed to acquire fixed assets which are used for longer period of time.
Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.
Fixed capital is also referred as circulating capital.
Initial planning of capital requirement is made by______.
Complete the sentence.
The process of converting raw material into finished goods is called ______
Explain the following term/concept.
Working capital
State any four factors affecting fixed capital requirement.
Justify the following statement.
Fixed capital stays in the business almost permanently.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Answer the following question.
Discuss the factors determining working capital requirement.
______ capital is used to carry out day-to-day business activities.
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creats a problem of bad debts.
Explain the following term/concept:
Fixed capital
Distinguish between the following.
Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital
Distinguish between Fixed Capital and Working Capital.
