Get an answer for 'Which one of the following is not an example of working capital? A. Example: Problem 2. B) financial capital. The following … Weighted average cost of capital = 15,100/1,30,000 x 100 = 11.61%. Inventory of$ 1,50,000 included in current Assets have become Obsolete since the Goods are lying in Inventory for more than 6 months. Login details for this Free course will be emailed to you, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. The term Capital Investment can be applied to two different segments - (i) Money or investment by a business to purchase land, machinery or buildings (sometimes it can be applied to replacement of equipment if it crosses a certain financial threshold). Cookie Policy, Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . PQR Limited has Current Assets of $2,00,000 and Current Liabilities of $ $90,000. You will Learn Basics of Accounting in Just 1 Hour, Guaranteed! Suppose ABC Limited has Current Assets $ 5,00,000 and Current Liabilities of $ 300,000. c) Venture capital is typically easy … ABC Limited is suffering from Liquidity Crisis due to the negative Working Capital of the Company, which will hinder the Business Operations in the long term. Natural Resource 3. Which of the following is an example of a capital resource? In fact, production would almost come to a stand-still without adequate and suitable supply of capital. Which of the following is most appropriate hurdle or discount rate for evaluating investment projects: A company is having some profitable investment projects with positive NPV to invest in. Which of the following is an example of a capital input? a. Capital Resource Preferred stock. e. all of the above. Functions of Capital: Capital is valued for the very useful functions it performs in the production of wealth. Explore answers and all related questions . Suppose ABC Limited has Current Assets $ 5,00,000 and Current Liabilities of $ 300,000. For example, a high Inventory will be a negative sign for the Company since there is a chance of the Inventory becoming obsolete. b. Q 52. d. All of the above are examples of capital investment projects. The management of the Company would have to sell the Inventory as early as possible in order to maintain the Liquidity. Which of the following would be an example of capital for a retail gasoline station? Note that net annual profit excludes depreciation. Keywords: which of the, following, is an example, of a capital resource, coal, loom, time, horse, goods, resources, products, equipment. Before going further in Capital Resources, let us have a brief understanding of the other types of resources as well. A) parking lot B) cardboard sale signs C) pens and markers D) handheld calculator. (ii) Money or investment in a business which would be used to purchase fixed assets rather than used to cover the business's day-to-day operating expenses.Option (a) can be a capital investment as mentioned in definition (i) but it isn't clear whether it crosses a certain financial threshold. The following working capital example provides an outline of the most common sources of working capital. A fixed capital example would be that if a firm invests in a building where the production process will take place, it would be referred to as fixed capital. However, this does not imply that purchases to sustain operations would not qualify as capital investments.Option (b), on the other hand, completely fulfills the criteria of Capital Investment since it would involve purchase of additional machinery and/or buildings and/or fixed assets. d. carpentry skills. Purchases of land & buildings. Explain. A fir m has the following capital structure after tax costs for the different. $2 million will be raised by issuing debt? b) New companies can access large amounts of upfront capital that does not have to be repaid, as a loan would be. ManpowerGroup Middle East. [03.06] Which of the following is an example of a capital investment? Stocks and bonds are examples of: A) natural resources. Accounts receivable of$ 75,000 included in current Assets are declared as Bad Debts and shall be written off to the Profit & Loss Account next year. Knowledge of the great American authors _________ is most closely associated with the concept of the sociological imagination. ... What is the original capital and capital earned money ? computer. The ARR method (also called the return on capital employed (ROCE) or the return on investment (ROI) method) of appraising a capital project is to estimate the accounting rate of return that the project should yield. The amount of workers who work in a Nike factory B.) (A) This is an example of a direct transfer of capital (B) This is an example of an exchange of physical assets (C) This is an example of a derivative market transaction (D) This is an example of primary market transaction (E) None of the above Here, Gross Working Capital = Current Assets of the Company = $5,00,000, Permanent Working Capital = Fixed Assets of the Company = $1,00,000, Calculation of Net Working Capital is as follows –. Because – Firstly, the building will not get directly consumed by the production process. Which of the following is an example of capital? We feature Viva, interview and multiple choice questions and answers Engineering, finance and science students..  c. Development of employee training programsÂ. , AL DOHA Company, Answer added by kanchana sridevi, Accounts And Audit Assistant , bv rao and co, Answer added by Hasnat Noor Chowdhury, Business Development Manager (Geocycle) , LafargeHolcim Bangladesh Limited, Answer added by Ismael Hamad, Trainer , DMCC, Answer added by Gayasuddin Mohammed, Advocate , Practicing Law before High Court at Hyderabad, Answer added by Yaqoub Alomar, Civil Engineer , Al-Zubeir municipality, Answer added by khaled elkholy, HR MANAGER , misk for import & export, Answer added by Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+, IT Security Expert , Information Unlimited Inc. (IUI), Answer added by Emad Mohammed said abdalla, ERP & IT Software, operation general manager . Expansion of production facilities is correct answer, The correct answer is (b) Expansion of production facilities.Capital investment projects are also known as Capital Expenditure (CAPEX) projects in most companies. Which of the following below is an example of a capital expenditure? The capital account includes international transfers of ownership. Multiple Choice . Which of the following is not considered to be an appropriate form of finance for capital investment projects? 1. Each example of the  Working Capital below states the topic, the relevant reasons, and additional comments as needed. So on paper, the WC of the Company may look Good in the Short Term; however, it may have a significant impact if the Inventory is not Sold and becomes obsolete. D Explanation: D) Real capital refers to the physical facilities used to produce goods and services. C) physical capital. No4 is the best answer............................  ***(d)-All of the above are examples of capital investment projects. Further Temporary WC of ABC Ltd is also positive, which is a good sign. Fixed Assets are $ 1,00,000. Which of the following regarding enterprise resource planning (ERP) is true? Which of the following would be an example of human capital? A firm must raise $10 million dollars in funding for a capital investment project. Every day, thousands of new job vacancies are listed on the award-winning platform from the region's top employers. The three different types of resources are – 1. ***** is the answer. Questions in other subjects: Mathematics, 02.11.2019 03:31 a. pizza ovens. c. U.S. Treasury bills. A. CFA® And Chartered Financial Analyst® Are Registered Trademarks Owned By CFA Institute.Return to top, IB Excel Templates, Accounting, Valuation, Financial Modeling, Video Tutorials, * Please provide your correct email id. A Strong Working Capital Cycle gives the Company the Cushion to perform the Business operations of the Company smoothly. A. It is an indicator of the Short Term Financial Strength of the Company and signifies the capability to meet the Current Liabilities and Debt Obligations due within one year. Register now D. All of the above. XYZ Limited has Current Assets of $2,00,000 and Current Liabilities of $ $90,000. Here we discuss its meaning and the various examples of working capital to understand it better. Circulating capital can consist of cash, operating expenses, raw materials, inventory in the process, finished goods inventory and accounts receivable. Calculate the WC of the Company. Labor is an important factor of production. Which of the following is an example of capital? Which of the following would be an example of a mandated capital budgeting decision. Justification for the correct and incorrect answer: A. Privacy Statement - e. Money market mutual funds.  d. 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