Question

explain working capital

Answer 1

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

Answer 2

Answer:

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. 

Working capital is the capital/funds required for day to day operations of the business. Working capital is invested usually in all types of inventories such as raw materials, spares, finished goods etc and credit extension to debtors and cash in hand.

Explanation:

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