what is working capital in what way it is useful for
company or orgainzation
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Answer / ram
Working capital= current Asset- current Liabilities
Working capital is the capital which is used for day to day
operations of business
| Is This Answer Correct ? | 23 Yes | 0 No |
Answer / helena gonsalvez
working capital is the capital required for the day today
operations of the business. it is also known as circulating
capital
W.C = Current assets - Current liabilities
current are those assets which can be easily converted into
cash
.Eg.cash in hand ,cash at bank
Current liabilities are those liabilities which are to be
paid within one year
Eg creditors ,Bills payable
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / rajender reddy
working capital means fund which is required for the day to
day operations of the business organisation
It is the difference between current assets and current
liabilities(W.C = CA-CL).
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Working capital known as Current assets - Current liablities
it is used for day to day business activities and working
capital is short term loans
| Is This Answer Correct ? | 1 Yes | 1 No |
A measure of both a company's efficiency and its short-term financial health. The working capital ratio is calculated as:
WORKING CAPITAL= CURRENT ASSETS-CURRENT LIABILITIES
Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory).
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