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What is Working Capital Management Concepts about?
Working capital refers to the funds used to finance day-to-day business operations, including current assets like inventory, cash, and receivables. There are two approaches to conceptualizing working capital: (1) the balance sheet approach views it as either gross working capital equal to current assets or net working capital equal to current assets minus current liabilities; (2) the operating cycle approach views it as the funds required to finance the operating cycle from acquisition of materials through
- Author
- Abin Varghese
- Language
- EN