Question

Define working capital management

Answer 1

Working capital management refers to a company's managerial accounting strategy designed to monitor & utilize the two components of working capital.

Answer 2

"$\large \green{ \fcolorbox{gray}{black}{ ☑ \: \textbf{Verified \: answer}}}$

Working Capital is the funds which are used in the day to day business operations of a company or to manage their daily running cost.

Working Capital = Current Assets - Current Liabilities

• Current Assets → Inventory, cash, and account receivables
• Current Liabilities → Account Payables And Short Term Loans