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CXC CAPE · · Accounting

Working capital management
Practice Questions

40 CXC CAPE Accounting questions on Working capital management, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for Working capital management.

Try 2 sample questions on Working capital management

Question 1 · 1 mark · Difficulty 1/3

What is working capital?

  1. The cash held in the bank at the year end
  2. Total assets less total liabilities
  3. Current assets less current liabilities
  4. Capital contributed by the owner for daily trading
Show answer & explanation
✓ Answer: CCurrent assets less current liabilities
Award 1 mark. Also called net current assets. It is the money tied up in the day-to-day running of the business.
Question 2 · 1 mark · Difficulty 1/3

How is the working capital cycle calculated?

  1. Inventory days plus receivables days plus payables days
  2. Inventory days plus receivables days less payables days
  3. Current assets divided by current liabilities
  4. Receivables days less inventory days less payables days
Show answer & explanation
✓ Answer: BInventory days plus receivables days less payables days
Award 1 mark. Supplier credit shortens the cycle, which is why it is the one element subtracted.
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CXC CAPE Accounting: Working capital management FAQ

Is Kramizo free for CXC CAPE students preparing for Accounting?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Working capital management practice with other Accounting topics or even switch to a totally different CXC CAPE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Working capital management questions aligned to the official CXC CAPE Accounting syllabus?
Every question is written against the published CXC CAPE Accounting specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CXC CAPE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CXC CAPE.
How is Working capital management typically tested on CXC CAPE Accounting papers?
Working capital management appears across multiple question types on real CXC CAPE Accounting papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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