Sarkari Jobs Pakistan
Download App

Working Capital MCQs 2026

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

📚 Finance Mcqs 📄 24 Past-Paper Qs ✓ Free · No Login Needed
🎯 Mock Test

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 1 Questions 1–10 of 60
  1. Q1 medium

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

    1. A 156 days
    2. B 131 days
    3. C 227 days
    4. D 26 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  2. Q2 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 151 days
    2. B 126 days
    3. C 226 days
    4. D 27 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  3. Q3 hard

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

    1. A 122 days
    2. B 147 days
    3. C 226 days
    4. D 20 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  4. Q4 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 151 days
    2. B 126 days
    3. C 234 days
    4. D 21 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  5. Q5 medium

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

    1. A 160 days
    2. B 235 days
    3. C 135 days
    4. D 27 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  6. Q6 medium

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

    1. A 164 days
    2. B 243 days
    3. C 139 days
    4. D 28 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  7. Q7 Past Paper · PPSC/FPSC/NTS hard

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

    1. A 167 days
    2. B 250 days
    3. C 28 days
    4. D 142 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  8. Q8 medium

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

    1. A 171 days
    2. B 258 days
    3. C 146 days
    4. D 29 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  9. Q9 medium

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

    1. A 174 days
    2. B 149 days
    3. C 265 days
    4. D 29 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  10. Q10 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 171 days
    2. B 266 days
    3. C 23 days
    4. D 146 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  11. Q11 hard

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

    1. A 171 days
    2. B 258 days
    3. C 29 days
    4. D 146 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  12. Q12 medium

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

    1. A 150 days
    2. B 175 days
    3. C 266 days
    4. D 30 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  13. Q13 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 178 days
    2. B 273 days
    3. C 30 days
    4. D 153 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  14. Q14 medium

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

    1. A 182 days
    2. B 157 days
    3. C 281 days
    4. D 31 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  15. Q15 hard

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

    1. A 160 days
    2. B 185 days
    3. C 288 days
    4. D 31 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  16. Q16 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 164 days
    2. B 189 days
    3. C 296 days
    4. D 32 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  17. Q17 hard

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

    1. A 100 days
    2. B 125 days
    3. C 180 days
    4. D 16 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  18. Q18 medium

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

    1. A 104 days
    2. B 129 days
    3. C 188 days
    4. D 17 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  19. Q19 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 129 days
    2. B 180 days
    3. C 104 days
    4. D 23 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  20. Q20 medium

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

    1. A 108 days
    2. B 133 days
    3. C 188 days
    4. D 24 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  21. Q21 hard

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

    1. A 111 days
    2. B 136 days
    3. C 195 days
    4. D 24 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  22. Q22 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 133 days
    2. B 196 days
    3. C 108 days
    4. D 18 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  23. Q23 medium

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

    1. A 111 days
    2. B 136 days
    3. C 203 days
    4. D 18 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  24. Q24 medium

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

    1. A 140 days
    2. B 211 days
    3. C 115 days
    4. D 19 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  25. Q25 Past Paper · PPSC/FPSC/NTS hard

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

    1. A 149 days
    2. B 212 days
    3. C 25 days
    4. D 124 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  26. Q26 medium

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

    1. A 153 days
    2. B 220 days
    3. C 26 days
    4. D 128 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  27. Q27 medium

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

    1. A 62 days
    2. B 87 days
    3. C 110 days
    4. D 11 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  28. Q28 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 84 days
    2. B 103 days
    3. C 11 days
    4. D 59 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  29. Q29 hard

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

    1. A 80 days
    2. B 95 days
    3. C 55 days
    4. D 10 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  30. Q30 Past Paper · PPSC/FPSC/NTS easy

    Credit terms 2/10 net 30 mean

    1. A 30% discount in 2 days
    2. B net payment in 10 months
    3. C 2% discount if paid within 10 days, else full payment in 30 days
    4. D no discount ever offered
    💡 Explanation:

    Trade credit terms encourage early payment.

  31. Q31 easy

    Just-in-time inventory reduces

    1. A carrying costs by receiving goods only as needed
    2. B supplier coordination entirely
    3. C quality control needs
    4. D sales forecasting
    💡 Explanation:

    JIT lowers inventory investment.

  32. Q32 Past Paper · PPSC/FPSC/NTS medium

    EOQ model in inventory minimizes

    1. A stockout cost only
    2. B sales revenue
    3. C ordering cost plus carrying cost
    4. D fixed overhead allocation
    💡 Explanation:

    Total inventory cost minimized at EOQ.

  33. Q33 easy

    Stretching accounts payable

    1. A always improves credit rating
    2. B eliminates need for cash
    3. C delays cash outflows but may damage supplier relations
    4. D is illegal in all cases
    💡 Explanation:

    Trade-off between liquidity and relationships.

  34. Q34 Past Paper · PPSC/FPSC/NTS medium

    Lock-box system accelerates

    1. A payment to suppliers
    2. B collection of receivables by reducing mail and processing float
    3. C inventory production
    4. D fixed asset purchases
    💡 Explanation:

    Faster availability of collected funds.

  35. Q35 hard

    The Baumol model for cash management balances

    1. A production setup cost only
    2. B depreciation and amortization
    3. C advertising reach
    4. D holding cost and transaction cost of converting securities to cash
    💡 Explanation:

    Optimal cash balance minimizes total cost.

  36. Q36 Past Paper · PPSC/FPSC/NTS medium

    Conservative working capital policy maintains

    1. A minimal cash reserves always
    2. B higher cash and inventory buffers with more long-term financing
    3. C maximum short-term borrowing
    4. D zero receivables
    💡 Explanation:

    Lower risk, higher carrying cost.

  37. Q37 medium

    Aggressive working capital policy uses

    1. A only long-term debt for all assets
    2. B more short-term financing for permanent current assets
    3. C zero current liabilities
    4. D no inventory holdings
    💡 Explanation:

    Lower financing cost but higher liquidity risk.

  38. Q38 Past Paper · PPSC/FPSC/NTS medium

    Cash conversion cycle equals

    1. A payables minus inventory only
    2. B fixed asset turnover period
    3. C bond maturity period
    4. D inventory period plus receivables period minus payables period
    💡 Explanation:

    CCC measures days cash is tied up.

  39. Q39 Past Paper · PPSC/FPSC/NTS easy

    Net working capital equals

    1. A fixed assets minus equity
    2. B current assets minus current liabilities
    3. C inventory plus equipment
    4. D total debt minus cash
    💡 Explanation:

    NWC measures short-term liquidity cushion.

  40. Q40 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 181 days
    2. B 206 days
    3. C 321 days
    4. D 34 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  41. Q41 hard

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

    1. A 209 days
    2. B 320 days
    3. C 40 days
    4. D 184 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  42. Q42 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 200 days
    2. B 319 days
    3. C 175 days
    4. D 34 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  43. Q43 medium

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

    1. A 196 days
    2. B 311 days
    3. C 171 days
    4. D 33 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  44. Q44 medium

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

    1. A 193 days
    2. B 304 days
    3. C 33 days
    4. D 168 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  45. Q45 Past Paper · PPSC/FPSC/NTS hard

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

    1. A 198 days
    2. B 173 days
    3. C 305 days
    4. D 32 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  46. Q46 medium

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

    1. A 195 days
    2. B 298 days
    3. C 32 days
    4. D 170 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  47. Q47 medium

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

    1. A 191 days
    2. B 166 days
    3. C 290 days
    4. D 31 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  48. Q48 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 122 days
    2. B 173 days
    3. C 97 days
    4. D 16 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  49. Q49 medium

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

    1. A 93 days
    2. B 118 days
    3. C 165 days
    4. D 15 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  50. Q50 medium

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

    1. A 122 days
    2. B 97 days
    3. C 165 days
    4. D 22 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  51. Q51 Past Paper · PPSC/FPSC/NTS hard

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

    1. A 118 days
    2. B 157 days
    3. C 21 days
    4. D 93 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  52. Q52 medium

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

    1. A 109 days
    2. B 156 days
    3. C 84 days
    4. D 15 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  53. Q53 medium

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

    1. A 105 days
    2. B 80 days
    3. C 148 days
    4. D 14 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  54. Q54 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 102 days
    2. B 77 days
    3. C 141 days
    4. D 14 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  55. Q55 hard

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

    1. A 82 days
    2. B 107 days
    3. C 142 days
    4. D 13 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  56. Q56 Past Paper · PPSC/FPSC/NTS medium

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

    1. A 104 days
    2. B 135 days
    3. C 13 days
    4. D 79 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  57. Q57 medium

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

    1. A 107 days
    2. B 82 days
    3. C 134 days
    4. D 19 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  58. Q58 medium

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

    1. A 73 days
    2. B 98 days
    3. C 133 days
    4. D 13 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  59. Q59 Past Paper · PPSC/FPSC/NTS hard

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

    1. A 94 days
    2. B 125 days
    3. C 12 days
    4. D 69 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

  60. Q60 medium

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

    1. A 91 days
    2. B 118 days
    3. C 66 days
    4. D 12 days
    💡 Explanation:

    CCC = inventory + receivables - payables.

More Finance Mcqs Topics

📖
Financial Management 65 MCQs
→ 📖
Time Value of Money 70 MCQs
→ 📖
Capital Budgeting 75 MCQs
→ 📖
Cost of Capital 74 MCQs
→ 📖
Dividend Policy 63 MCQs
→ 📖
Capital Structure 12 MCQs
→

See all Finance Mcqs topics →

Get instant alerts & apply faster — install the free app Install App