Question

    Under the Simplified Turnover Method, what percentage of

    the projected annual turnover is typically used to calculate the working capital requirement?
    A 15% Correct Answer Incorrect Answer
    B 20% Correct Answer Incorrect Answer
    C 25% Correct Answer Incorrect Answer
    D 30% Correct Answer Incorrect Answer
    E 35% Correct Answer Incorrect Answer

    Solution

    According to the Simplified Turnover Method, the working capital requirement is calculated as 25% of the projected annual turnover of the business. A margin of 5% is provided by the borrower, while the remaining 20% is financed by the bank

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