Short Term Sources of Finance
Telangana Open School (TOSS) · Class 12 · Business Studies
Most important questions from Short Term Sources of Finance for Telangana Open School (TOSS) Class 12 Business Studies board exam 2026. MCQs, short answer, and long answer questions with marks.
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Sample Questions
What does working capital equal?
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Current assets minus current liabilities
Working capital is calculated as current assets minus current liabilities. It shows the liquidity available for daily operations.
Which of the following is a current liability?
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Bills payable
Bills payable are short-term obligations to be paid within a year, making them current liabilities.
Trade credit is generally provided by:
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Suppliers of goods
Trade credit is the credit extended by suppliers of raw materials or goods to the buyer, allowing payment after a certain period.
Which of the following is a merit of short-term finance?
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Economical to arrange
Short-term finance is relatively economical because it can be arranged quickly and with lower interest costs compared to long-term loans.
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