MANAGEMENT

Detailed explanation-1: -Excess of current assets of an organisation over its current liabilities is known as Working Capital. It can also be defined as that part of total capital, which is required for holding current assets.

Detailed explanation-2: -This statement is False. NWC is a measure of the amount of short-term cash investment the company needs to make to sustain its daily operations. The investment in NWC increases with current assets (e.g. inventory) and decreases with current liabilities (e.g. accounts payable).

Detailed explanation-3: -The correct answer is: Raw Material. Raw materials and available money are called working capital.

Detailed explanation-4: -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.