Question

define working capital class 9​

Answer 1

Answer:

Raw materials and money in hand are thus called working capital. Tools, machines, buildings etc. are called fixed capital and these can be used in production over many years. On the other hand, raw materials and money in hand, which are called working capital, are used up in production.

Explanation:

Definition. Working capital is the amount of cash a business can safely spend. It's commonly defined as current assets minus current liabilities. Usually working capital is calculated based on cash, assets that can quickly be converted to cash (such as invoices from debtors), and expenses that will be due within a year ...

Answer 2

Answer:

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Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital.

$\green{\boxed{\dag Working\: Capital \: = \: Current\: Assets\: - \: Current \: Liabilities \dag}}$

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