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Which of the following are relevant to the total working capital days ratio calculation?
Suggested Answer: B
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38 comments · newest first
AS
Ashanti
11 months ago
Totally agree, all those factors play a role!
VE
Veta
11 months ago
Wait, why is Operating profit even listed here?
TE
Terry
11 months ago
Current assets and liabilities are key for this ratio.
ON
Onita
12 months ago
I think Payables days matter too!
LO
Louann
12 months ago
Definitely includes Inventories days and Receivables days.
CO
Corrinne
1 year ago
I think all three components—inventories, receivables, and payables days—are important for calculating working capital days, but I need to double-check that.
KA
Kayleigh
1 year ago
I feel like operating profit isn't relevant here, but I might be mixing it up with other financial ratios we studied.
JU
Justine
1 year ago
I remember practicing a question where current assets and current liabilities were involved, but I can't recall if they directly affect the working capital days ratio.
KA
Katina
1 year ago
I think inventories days and receivables days are definitely part of the working capital days ratio, but I'm not sure about payables.
BU
Buffy
1 year ago
The key is remembering the working capital formula - current assets minus current liabilities. So all those line items listed are definitely relevant. I'll work through it step-by-step to make sure I get the right answer.
JE
Jestine
1 year ago
Wait, does current assets and current liabilities also factor into this? I'm a bit confused on how all these different elements fit together. Better re-read the question carefully.
WI
Willie
1 year ago
Okay, I got this. Inventories, receivables, and payables days are all directly relevant to the total working capital days calculation. I'll make sure to double-check my work, but I feel confident I can nail this question.
MA
Maricela
1 year ago
Hmm, not sure about this one. I know working capital is important, but I'm a bit fuzzy on the exact formula and what factors go into it. Might need to review my notes before attempting this.
ST
Stefan
1 year ago
This looks like a straightforward question on working capital ratios. I'll focus on the key components like inventories, receivables, and payables days.
RA
Raul
1 year ago
This seems like a tricky one. I'll need to think through the partition key and throughput considerations carefully.
AL
Alease
1 year ago
I think I've got this. The key is to automate the process, so "Configure the exchange rate provider" and "Run the import currency exchange rate process" are the two options I would select. That should set up the system to automatically pull the latest exchange rates from the European Central Bank.
MA
Maryann
1 year ago
Working capital days, the only ratio accountants care about after breakfast, lunch, and dinner.
MI
Michel
1 year ago
E) Current liabilities
AL
Aleisha
1 year ago
C) Payables days
TY
Tyisha
1 year ago
B) Receivables days
MI
Micaela
1 year ago
A) Inventories days
CA
Carlee
2 years ago
This is a classic accounting exam question. They're really testing if we understand the fundamentals of working capital management. I bet the answer is options A, B, C, D, and E.
FR
Freeman
1 year ago
Yes, it's crucial to have a good understanding of working capital management for accounting exams.
GL
Glen
1 year ago
I think you're right, it's important to consider all those factors when calculating the total working capital days ratio.
SU
Sunny
2 years ago
Operating profit? That's a bit of a curveball. I don't see how that would factor into the working capital days calculation. Unless they're trying to trip us up with that one!
CL
Clorinda
2 years ago
Wait, what about Current assets and Current liabilities? Aren't those kind of important too? I guess the ratio is looking at the whole working capital picture.
LY
Lynsey
1 year ago
That makes sense, it's about looking at the whole working capital picture.
XO
Xochitl
1 year ago
F) Operating profit
JA
Jacki
1 year ago
D) Current assets
JU
Juliann
1 year ago
Yes, current assets and current liabilities are also important for the total working capital days ratio calculation.
LA
Layla
1 year ago
E) Current liabilities
WI
Wilda
1 year ago
C) Payables days
AM
Amber
1 year ago
B) Receivables days
FR
Franchesca
1 year ago
A) Inventories days
NI
Nickolas
2 years ago
I believe D and F are not relevant for this calculation.
RE
Rebeca
2 years ago
Inventories days, Receivables days, and Payables days are definitely relevant to the total working capital days ratio calculation. Those are the key components of the cash conversion cycle, which is what the ratio is measuring.
LA
Lauran
2 years ago
I agree with Lizette, but I also think E is important.
LI
Lizette
2 years ago
I think A, B, and C are relevant.