Question

Which of the following is a key assumption in the Simplified Turnover Method for assessing working capital?

A The working capital requirement is based on current liabilities.
B The working capital gap is calculated using a rolling average of sales over 5 years
C There are 4 operating cycles in a year
D The margin is determined solely by the net working capital of the firm.
E The method uses a fixed rate of 30% of turnover for working capital assessment.
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