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Working Capital MCQs 2026

60 questions with detailed answers · 24 from past papers · 6 quiz batches available

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Read each question, think about the answer, then click Show Answer to reveal the correct option and explanation. Load 10 at a time so it stays manageable — perfect for one-topic study sessions on the bus or during a break.

Page 1 of 1Questions 1–10 of 60
  1. Q1Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 42: inventory period 132 days, receivables 98 days, payables 66 days. Cash conversion cycle is

    1. A164 days
    2. B189 days
    3. C296 days
    4. D32 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  2. Q2hard

    Working capital case 41: inventory period 129 days, receivables 95 days, payables 64 days. Cash conversion cycle is

    1. A160 days
    2. B185 days
    3. C288 days
    4. D31 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  3. Q3medium

    Working capital case 40: inventory period 126 days, receivables 93 days, payables 62 days. Cash conversion cycle is

    1. A182 days
    2. B157 days
    3. C281 days
    4. D31 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  4. Q4Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 39: inventory period 123 days, receivables 90 days, payables 60 days. Cash conversion cycle is

    1. A178 days
    2. B273 days
    3. C30 days
    4. D153 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  5. Q5medium

    Working capital case 38: inventory period 120 days, receivables 88 days, payables 58 days. Cash conversion cycle is

    1. A150 days
    2. B175 days
    3. C266 days
    4. D30 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  6. Q6hard

    Working capital case 37: inventory period 117 days, receivables 85 days, payables 56 days. Cash conversion cycle is

    1. A171 days
    2. B258 days
    3. C29 days
    4. D146 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  7. Q7Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 36: inventory period 123 days, receivables 83 days, payables 60 days. Cash conversion cycle is

    1. A171 days
    2. B266 days
    3. C23 days
    4. D146 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  8. Q8medium

    Working capital case 35: inventory period 120 days, receivables 87 days, payables 58 days. Cash conversion cycle is

    1. A174 days
    2. B149 days
    3. C265 days
    4. D29 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  9. Q9medium

    Working capital case 34: inventory period 117 days, receivables 85 days, payables 56 days. Cash conversion cycle is

    1. A171 days
    2. B258 days
    3. C146 days
    4. D29 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  10. Q10Past Paper · PPSC/FPSC/NTShard

    Working capital case 33: inventory period 114 days, receivables 82 days, payables 54 days. Cash conversion cycle is

    1. A167 days
    2. B250 days
    3. C28 days
    4. D142 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  11. Q11medium

    Working capital case 32: inventory period 111 days, receivables 80 days, payables 52 days. Cash conversion cycle is

    1. A164 days
    2. B243 days
    3. C139 days
    4. D28 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  12. Q12medium

    Working capital case 31: inventory period 108 days, receivables 77 days, payables 50 days. Cash conversion cycle is

    1. A160 days
    2. B235 days
    3. C135 days
    4. D27 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  13. Q13Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 30: inventory period 105 days, receivables 75 days, payables 54 days. Cash conversion cycle is

    1. A151 days
    2. B126 days
    3. C234 days
    4. D21 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  14. Q14hard

    Working capital case 29: inventory period 102 days, receivables 72 days, payables 52 days. Cash conversion cycle is

    1. A122 days
    2. B147 days
    3. C226 days
    4. D20 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  15. Q15Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 28: inventory period 99 days, receivables 77 days, payables 50 days. Cash conversion cycle is

    1. A151 days
    2. B126 days
    3. C226 days
    4. D27 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  16. Q16medium

    Working capital case 27: inventory period 105 days, receivables 74 days, payables 48 days. Cash conversion cycle is

    1. A156 days
    2. B131 days
    3. C227 days
    4. D26 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  17. Q17medium

    Working capital case 26: inventory period 102 days, receivables 72 days, payables 46 days. Cash conversion cycle is

    1. A153 days
    2. B220 days
    3. C26 days
    4. D128 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  18. Q18Past Paper · PPSC/FPSC/NTShard

    Working capital case 25: inventory period 99 days, receivables 69 days, payables 44 days. Cash conversion cycle is

    1. A149 days
    2. B212 days
    3. C25 days
    4. D124 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  19. Q19medium

    Working capital case 24: inventory period 96 days, receivables 67 days, payables 48 days. Cash conversion cycle is

    1. A140 days
    2. B211 days
    3. C115 days
    4. D19 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  20. Q20medium

    Working capital case 23: inventory period 93 days, receivables 64 days, payables 46 days. Cash conversion cycle is

    1. A111 days
    2. B136 days
    3. C203 days
    4. D18 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  21. Q21Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 22: inventory period 90 days, receivables 62 days, payables 44 days. Cash conversion cycle is

    1. A133 days
    2. B196 days
    3. C108 days
    4. D18 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  22. Q22hard

    Working capital case 21: inventory period 87 days, receivables 66 days, payables 42 days. Cash conversion cycle is

    1. A111 days
    2. B136 days
    3. C195 days
    4. D24 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  23. Q23medium

    Working capital case 20: inventory period 84 days, receivables 64 days, payables 40 days. Cash conversion cycle is

    1. A108 days
    2. B133 days
    3. C188 days
    4. D24 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  24. Q24Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 19: inventory period 81 days, receivables 61 days, payables 38 days. Cash conversion cycle is

    1. A129 days
    2. B180 days
    3. C104 days
    4. D23 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  25. Q25medium

    Working capital case 18: inventory period 87 days, receivables 59 days, payables 42 days. Cash conversion cycle is

    1. A104 days
    2. B129 days
    3. C188 days
    4. D17 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  26. Q26hard

    Working capital case 17: inventory period 84 days, receivables 56 days, payables 40 days. Cash conversion cycle is

    1. A100 days
    2. B125 days
    3. C180 days
    4. D16 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  27. Q27Past Paper · PPSC/FPSC/NTSeasy

    Credit terms 2/10 net 30 mean

    1. A30% discount in 2 days
    2. Bnet payment in 10 months
    3. C2% discount if paid within 10 days, else full payment in 30 days
    4. Dno discount ever offered
    💡 Explanation:

    Trade credit terms encourage early payment.

  28. Q28easy

    Just-in-time inventory reduces

    1. Acarrying costs by receiving goods only as needed
    2. Bsupplier coordination entirely
    3. Cquality control needs
    4. Dsales forecasting
    💡 Explanation:

    JIT lowers inventory investment.

  29. Q29Past Paper · PPSC/FPSC/NTSeasy

    Net working capital equals

    1. Afixed assets minus equity
    2. Bcurrent assets minus current liabilities
    3. Cinventory plus equipment
    4. Dtotal debt minus cash
    💡 Explanation:

    NWC measures short-term liquidity cushion.

  30. Q30Past Paper · PPSC/FPSC/NTSmedium

    EOQ model in inventory minimizes

    1. Astockout cost only
    2. Bsales revenue
    3. Cordering cost plus carrying cost
    4. Dfixed overhead allocation
    💡 Explanation:

    Total inventory cost minimized at EOQ.

  31. Q31easy

    Stretching accounts payable

    1. Aalways improves credit rating
    2. Beliminates need for cash
    3. Cdelays cash outflows but may damage supplier relations
    4. Dis illegal in all cases
    💡 Explanation:

    Trade-off between liquidity and relationships.

  32. Q32Past Paper · PPSC/FPSC/NTSmedium

    Lock-box system accelerates

    1. Apayment to suppliers
    2. Bcollection of receivables by reducing mail and processing float
    3. Cinventory production
    4. Dfixed asset purchases
    💡 Explanation:

    Faster availability of collected funds.

  33. Q33hard

    The Baumol model for cash management balances

    1. Aproduction setup cost only
    2. Bdepreciation and amortization
    3. Cadvertising reach
    4. Dholding cost and transaction cost of converting securities to cash
    💡 Explanation:

    Optimal cash balance minimizes total cost.

  34. Q34Past Paper · PPSC/FPSC/NTSmedium

    Conservative working capital policy maintains

    1. Aminimal cash reserves always
    2. Bhigher cash and inventory buffers with more long-term financing
    3. Cmaximum short-term borrowing
    4. Dzero receivables
    💡 Explanation:

    Lower risk, higher carrying cost.

  35. Q35medium

    Aggressive working capital policy uses

    1. Aonly long-term debt for all assets
    2. Bmore short-term financing for permanent current assets
    3. Czero current liabilities
    4. Dno inventory holdings
    💡 Explanation:

    Lower financing cost but higher liquidity risk.

  36. Q36Past Paper · PPSC/FPSC/NTSmedium

    Cash conversion cycle equals

    1. Apayables minus inventory only
    2. Bfixed asset turnover period
    3. Cbond maturity period
    4. Dinventory period plus receivables period minus payables period
    💡 Explanation:

    CCC measures days cash is tied up.

  37. Q37medium

    Working capital case 11: inventory period 66 days, receivables 48 days, payables 34 days. Cash conversion cycle is

    1. A105 days
    2. B80 days
    3. C148 days
    4. D14 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  38. Q38Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 10: inventory period 63 days, receivables 46 days, payables 32 days. Cash conversion cycle is

    1. A102 days
    2. B77 days
    3. C141 days
    4. D14 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  39. Q39hard

    Working capital case 9: inventory period 69 days, receivables 43 days, payables 30 days. Cash conversion cycle is

    1. A82 days
    2. B107 days
    3. C142 days
    4. D13 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  40. Q40Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 8: inventory period 66 days, receivables 41 days, payables 28 days. Cash conversion cycle is

    1. A104 days
    2. B135 days
    3. C13 days
    4. D79 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  41. Q41medium

    Working capital case 7: inventory period 63 days, receivables 45 days, payables 26 days. Cash conversion cycle is

    1. A107 days
    2. B82 days
    3. C134 days
    4. D19 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  42. Q42medium

    Working capital case 6: inventory period 60 days, receivables 43 days, payables 30 days. Cash conversion cycle is

    1. A73 days
    2. B98 days
    3. C133 days
    4. D13 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  43. Q43Past Paper · PPSC/FPSC/NTShard

    Working capital case 5: inventory period 57 days, receivables 40 days, payables 28 days. Cash conversion cycle is

    1. A94 days
    2. B125 days
    3. C12 days
    4. D69 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  44. Q44medium

    Working capital case 4: inventory period 54 days, receivables 38 days, payables 26 days. Cash conversion cycle is

    1. A91 days
    2. B118 days
    3. C66 days
    4. D12 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  45. Q45medium

    Working capital case 3: inventory period 51 days, receivables 35 days, payables 24 days. Cash conversion cycle is

    1. A62 days
    2. B87 days
    3. C110 days
    4. D11 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  46. Q46Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 2: inventory period 48 days, receivables 33 days, payables 22 days. Cash conversion cycle is

    1. A84 days
    2. B103 days
    3. C11 days
    4. D59 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  47. Q47hard

    Working capital case 1: inventory period 45 days, receivables 30 days, payables 20 days. Cash conversion cycle is

    1. A80 days
    2. B95 days
    3. C55 days
    4. D10 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  48. Q48medium

    Working capital case 47: inventory period 138 days, receivables 103 days, payables 70 days. Cash conversion cycle is

    1. A196 days
    2. B311 days
    3. C171 days
    4. D33 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  49. Q49Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 48: inventory period 141 days, receivables 106 days, payables 72 days. Cash conversion cycle is

    1. A200 days
    2. B319 days
    3. C175 days
    4. D34 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  50. Q50hard

    Working capital case 49: inventory period 144 days, receivables 108 days, payables 68 days. Cash conversion cycle is

    1. A209 days
    2. B320 days
    3. C40 days
    4. D184 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  51. Q51Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 50: inventory period 147 days, receivables 104 days, payables 70 days. Cash conversion cycle is

    1. A181 days
    2. B206 days
    3. C321 days
    4. D34 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  52. Q52medium

    Working capital case 12: inventory period 69 days, receivables 51 days, payables 36 days. Cash conversion cycle is

    1. A109 days
    2. B156 days
    3. C84 days
    4. D15 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  53. Q53medium

    Working capital case 15: inventory period 78 days, receivables 51 days, payables 36 days. Cash conversion cycle is

    1. A93 days
    2. B118 days
    3. C165 days
    4. D15 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  54. Q54medium

    Working capital case 46: inventory period 135 days, receivables 101 days, payables 68 days. Cash conversion cycle is

    1. A193 days
    2. B304 days
    3. C33 days
    4. D168 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  55. Q55medium

    Working capital case 14: inventory period 75 days, receivables 56 days, payables 34 days. Cash conversion cycle is

    1. A122 days
    2. B97 days
    3. C165 days
    4. D22 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  56. Q56Past Paper · PPSC/FPSC/NTShard

    Working capital case 13: inventory period 72 days, receivables 53 days, payables 32 days. Cash conversion cycle is

    1. A118 days
    2. B157 days
    3. C21 days
    4. D93 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  57. Q57Past Paper · PPSC/FPSC/NTSmedium

    Working capital case 16: inventory period 81 days, receivables 54 days, payables 38 days. Cash conversion cycle is

    1. A122 days
    2. B173 days
    3. C97 days
    4. D16 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  58. Q58medium

    Working capital case 43: inventory period 135 days, receivables 93 days, payables 62 days. Cash conversion cycle is

    1. A191 days
    2. B166 days
    3. C290 days
    4. D31 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  59. Q59medium

    Working capital case 44: inventory period 138 days, receivables 96 days, payables 64 days. Cash conversion cycle is

    1. A195 days
    2. B298 days
    3. C32 days
    4. D170 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  60. Q60Past Paper · PPSC/FPSC/NTShard

    Working capital case 45: inventory period 141 days, receivables 98 days, payables 66 days. Cash conversion cycle is

    1. A198 days
    2. B173 days
    3. C305 days
    4. D32 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

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