Working capital is the difference between current assets and current liabilities. The higher the level of working capital then the greater the funds which are readily available in the short term (current assets) to cover the
short term liabilities ( Current liabilities) and the lower the risk that creditors will not be able to be paid.
Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities.
I am out of words to say thanks to Realexamcollection for helping me in preparation for F3 exam. This site provided me F3 Dumps in PDF form and gave an astute knowledge of the field. I downloaded F3 dumps on the suggestion of my friend and I am thankful to him too for this favor.
ReplyDelete