Social Sciences, asked by kinasona, 9 months ago

which capital is known as working capital​

Answers

Answered by katakamsaiakshay192
0

Explanation:

The capital that is required for operating business, organisation or other entity, including governmental entities, or the capital that is used in day-to-day trading operations, which is calculated as the current assets minus the current liabilities, is known as working capital.

Answered by OoINTROVERToO
0

"  \ \ \ \large \cal{ \pmb{ \colorbox{darkblue}{W ORKING \: \: \: \: CAPITAL}}}\ \ \ "

WORKING CAPITAL is defined as the funds which are used in the day to day business operations of a company.

The efficient management of working capital is important for both, the profitability and the financial health of the company.

In layman’s term, every company needs a cash reserve to manage their daily running cost and that is known as the Working Capital.

Working capital is calculated as:

Working Capital = Current Assets - Current Liabilities

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