Lesson: Working Capital - Practice Questions

In this lesson, Nick Palazzolo, CPA, takes on the topic of working capital with an engaging review of multiple-choice questions that test critical understanding of financial concepts. Nick starts off by demystifying trade credit terms through a practical example, showing how to calculate the payment amount within a discount period. Next, he tackles the sometimes perplexing currency exchange questions with a relatable chocolate bar analogy, simplifying the concept of currency appreciation and depreciation. Then, Nick demonstrates how to calculate cost of goods manufactured using a clear formulaic approach and basic algebra, ensuring these foundational calculations are thoroughly understood. Lastly, Nick dives into different financial terms, identifying synonyms and nonsynonyms, and clarifies common terminologies such as desired rate of return, hurdle rate, and interest rate, ensuring that each concept is not just memorized but fully grasped. Join in for an informative and insightful practice session that’s sure to sharpen those financial literacy skills.<br>