BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net working capital
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Gross working capital
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Fixed capital
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Working capital
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Detailed explanation-1: -Working capital is the difference between a company’s current assets and current liabilities. Working capital can be negative if current liabilities are greater than current assets.
Detailed explanation-2: -Working capital is calculated by subtracting current liabilities from current assets, as listed on the company’s balance sheet. Current assets include cash, accounts receivable and inventory. Current liabilities include accounts payable, taxes, wages and interest owed.
Detailed explanation-3: -Simply put, Net Working Capital (NWC) is the difference between a company’s current assets and current liabilities on its balance sheet. It is a measure of a company’s liquidity and its ability to meet short-term obligations, as well as fund operations of the business.