More Questions attached 4

Net working capital
i. Net working capital may be defined as current assets minus
current liabilities. This also defines the current ratio.
a. True
b. False
Motives for holding cash
ii. Firms hold cash balances in order to complete transactions that
are necessary in business operations and as compensation to banks
for providing loans and services.
a. True
b. False
Cash discounts
iii. If you receive some goods on April 1 with the following terms;
3/20, net 30, June 1 dating, it means that you will receive a 3
percent discount if the bill is paid on or before June 20 and
that the full amount must be paid 30 days after receipt of the
goods.
a. True