Working Capital Finance
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 76 rapid-fire Q&A cards.
Inventory (Raw Material, WIP, Finished Goods)?
Sundry Creditors / Trade Payables
Sundry Debtors / Receivables (within 90 days)?
Short-term Bank Borrowings (CC/OD/WCDL)
Cash & Bank Balances?
Provisions due within 1 year
Short-term Investments?
Advances from Customers
Prepaid Expenses, Accrued Income?
Statutory Dues, Salaries Payable
Current Ratio — Formula / Benchmark / Inference?
Formula: CA / CL; Benchmark / Inference: ≥ 1.33 (Tandon II); higher = better liquidity
Quick Ratio (Acid Test) — Formula / Benchmark / Inference?
Formula: (CA − Inventory) / CL; Benchmark / Inference: ≥ 1 indicates strong short-term liquidity
Cash Ratio — Formula / Benchmark / Inference?
Formula: (Cash + Mkt. Sec.) / CL; Benchmark / Inference: ≥ 0.5 is comfortable
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