Question

what is working capital??​

Answer 1

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.

Answer 2

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• Every business needs to take the decision regarding the investment in current assets i.e. the working capital.

• Current assets refer to the assets that are converted into cash or cash equivalents in a short period of time (less than or equal to one year).

• There are two broad concepts of working capital namely, Gross working capital and Net working capital.