GENERAL KNOWLEDGE

Detailed explanation-1: -The sources of short-term working capital include tax provisions, public deposits, cash credits, and others. Whereas, spontaneous working capital includes notes payable and bills payable.

Detailed explanation-2: -Sources of working capital Long-term working capital sources include long-term loans, provision for depreciation, retained profits, debentures and share capital. Short-term working capital sources include dividend or tax provisions, cash credit, public deposits and others.

Detailed explanation-3: -In short, working capital is the money available to meet your current, short-term obligations. To make sure your working capital works for you, you’ll need to calculate your current levels, project your future needs and consider ways to make sure you always have enough cash.

Detailed explanation-4: -Working capital is a financial metric that is the difference between a company’s curent assets and current liabilities. As a financial metric, working capital helps plan for future needs and ensure the company has enough cash and cash equivalents meet short-term obligations, such as unpaid taxes and short-term debt.