What is meant by working capital gap?
- 5 Answers
- 65971 Views
- Bank of Maharashtra, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / rr
WCG = TCA(total chargable asset = CA+cash)-Othe current liabilities
| Is This Answer Correct ? | 75 Yes | 18 No |
Answer / biju gopal
n order to reduce the dependence of businesses on banks for working capital, ceiling on bank credit to individual firms has been prescribed. Accordingly, businesses have to compute the current assets requirement on the basis of stipulations as to size. So, flabby inventory, speculative inventory cannot be carried on with bank finance. Normal current liabilities, other than bank finance, are also worked out considering industry and geographical features and factors. Working capital gap is the excess of current assets as per stipulations over normal current liabilities (other than bank assistance). Bank assistance for working capital shall be based on the working capital gap, instead of the current assets need of a business. This type of financing assistance by banks was introduced on the basis of recommendations of Tandon Committee
| Is This Answer Correct ? | 19 Yes | 4 No |
Answer / mostafa nagy
I think the working capital gap happens when the difference between the current assets and current liabilities become negative and the following formula will clarify
Current assets - Current liabilities = - 100,000
| Is This Answer Correct ? | 30 Yes | 31 No |
When purchasing a stock what charges are payable?
How many centres of eft are present in india?
we've a number of new Department heads. Your assignment is to prepare a budget training program for the new Department heads. How will you structure the training ? program?
0 Answers State Bank Of India SBI,
What is Under Subscription?
0 Answers Joint Stock Company,
What is the monetary policy of RBI?
what are certain measures for which you have to be ready for equity trading?
What were the headlines in the Financial Times today?
What is 'contingency fund'?
Name some para-banking activities?
Name the act is passed to prevent efforts to bing money earned through illegal activities in circulation.
what is weighted average rating factor?
How Is Banks Supervision Structured?
-
Business Administration (517) - Marketing Sales (1279)
- Banking Finance (3208)
- Human Resources (745)
- Personnel Management (68)
- Hotel Management (29)
- Industrial Management (113)
- Infrastructure Management (14)
- IT Management (97)
- Supply Chain Management (16)
- Operations Management (39)
- Funding (79)
- Insurance (494)
- Waste Management (1)
- Labor Management (48)
- Non Technical (73)
- Business Management AllOther (546)
