Question

which capital is konw as working capital ??

Answer 1

Answer:

⏩Raw material and money in hand

⏩Production required a variety of raw materials such as the yarn used by the weaver and the clay used by the potter. Also, some money is always required during production to make payments and buy other necessary items. Raw material and money in hand are called working capital. Unlike tools, machines and buildings these are used up in production.

hope it's helpful ✅✅✅

Answer 2

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Working Capital is the funds which are used in the day to day business operations of a company or to manage their daily running cost.

Working Capital = Current Assets - Current Liabilities

Current Assets → Inventory, cash, and account receivables

Current Liabilities → Account Payables And Short Term Loans