Question

Explain Working Capital​

Answer 1

Answer:

he capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

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Answer 2

Explanation:

The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities is called working capital.

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.

In an ordinary sense, working capital denotes the amount of funds needed for meeting day-to-day operations of a concern. ... Hence it deals with both, assets and liabilities—in the sense of managing working capital it is the excess of current assets over current liabilities

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