2006-12-22 22:11:40 · 3 answers · asked by mendoza z 1 in Business & Finance ➔ Other - Business & Finance
Cash or other liquid assets, used in the daily operation of a business.
2006-12-22 22:13:48 · answer #1 · answered by regerugged 7 · 0⤊ 0⤋
Net working capital is Current assets less current liablities.
Current assets are items like debtors stock etc which are convertible into money immediately and current liabilities are all the loans and other payments which are payable within one year.
Net Working capital is the amount that will remain after paying all current liabilities from the amount collected after the encashment of current assets.
2006-12-22 22:47:16 · answer #2 · answered by Old M 1 · 0⤊ 0⤋
Capital is the funds you need to run a business- Fixed & for day to day uses. Those assets used for day to day businesses are called Current assets,eg. cash& bank bal, stock, debtors,etc . Likewise there are some day today liabilities created by us , like payables- rent, salary,, creditors, bank overdraft, etc. These are called as Current Liabilities. Total current assets are called GROSS WORKINGCAPITAL & Total current assets (-) Total current liabilities are called NET WORKING CAPITAL.
2006-12-22 22:22:44 · answer #3 · answered by rama 2 · 0⤊ 0⤋