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what is working capital in what way it is useful for
company or orgainzation

Answers were Sorted based on User's Feedback



what is working capital in what way it is useful for company or orgainzation..

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

what is working capital in what way it is useful for company or orgainzation..

Answer / chandana

Working Capital is maintained in the day to day activites
of the business. It shows the diffrence between the current
assets and current liabilites of a business. So working
capital depicts the liquidity position of the business.

Is This Answer Correct ?    12 Yes 0 No

what is working capital in what way it is useful for company or orgainzation..

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

what is working capital in what way it is useful for company or orgainzation..

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).

Is This Answer Correct ?    3 Yes 0 No

what is working capital in what way it is useful for company or orgainzation..

Answer / durga prasad

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

what is working capital in what way it is useful for company or orgainzation..

Answer / madhulika

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).

Is This Answer Correct ?    0 Yes 0 No

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