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Question
Write a word or a term or a phrase which can substitute the following statement :
The difference between current assets and current liabilities.
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Solution
Working Capital.
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RELATED QUESTIONS
Explain briefly any four factors that affect the working capital requirement of a company.
Explain the following as factors affecting the requirements of working capital:
Production cycle
Explain the following as factors affecting the requirement of working capital:
The credit allowed and availed
Varunica Ltd., a reputed truck manufacturing company, needs rupees twenty crores as additional capital to expand its business. Mr. Alind Jindal, the CEO of the company, wants to raise funds through equity. The Finance Manager, Mr. Nikhil Sachdeva, suggests that the existing shareholders be offered the privilege to subscribe to new issue of shares as per the terms and conditions of the company which was agreed by Mr. Alind Jindal.
Name the method through which the company decided to raise additional capital.
State, with reason, whether the following statement is True or False.
Requirement of working capital does not depend upon any factor.
Amrit is running a ‘transport service’ and earning good returns by providing this service to industries. Giving reason, state whether the working capital requirement of the firm will be ‘less’ or ‘more’.
Ramnath is into the business of assembling and selling of televisions. Recently he has adopted a new policy of purchasing the components on three months credit and selling the complete product in cash. Will it affect the requirement of working capital? Give reason in support of your answer.
What is working capital? Discuss five important determinants of working capital requirement?
Fixed Capital Working Capital
Answer the question.
Briefly explain any four types of working capital required by a business concern.
What is meant by capital gearing ratio?
Why is working capital also known as circulating capital?
A fixed asset should be financed through
Current assets of a business firm should be financed through
What are the important determinants of working capital requirement?
Working capital is calculated as?
Net working capital may be defined as the:
