Question

What is working capital ? Explain the determinants of working capital.

Answer 1

Answer:

The determinants of working capital are items that have a direct impact on the amount invested in current assets and current liabilities. ... If a business offers easy credit terms to its customers, the company is investing in accounts receivable that may be outstanding for a long time

Answer 2

The determinants of working capital are items that have a direct impact on the amount invested in current assets and current liabilities. ... If a business offers easy credit terms to its customers, the company is investing in accounts receivable that may be outstanding for a long time.