Interested to Buy Any Domain ? << Click Here >> for more details...
What do you mean by the working-capital of an
organization??? How is it calculated????? Also Define the
importance of liquidity ratio along with its formula.
- 5 Answers
- 12192 Views
- BA Continnum Solutions, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / abdul rashid
Working capital is part of capital that is used for day to
day business requirement(short term). It is calculated by
deducting current liablities from current assests (Cureent
assests-current liabilities = WC).
Current assest divided by current liabilities refers to
liquidity ratio (CA/CL). It measures liquidity position of
an orgainisation.
| Is This Answer Correct ? | 40 Yes | 2 No |
Answer / hpotter1987
working capital is that part of capital which is used for
day to day oerations like payment of wages various day to
day bills. it is excess of current assets over the current
liabilities.
liquid ratio is the ration of liquid assets to the liquid
liabilities where liquid assets = CA - closing Stock
and liquid liabilities = CL - Bank Overdraft
(refer book jayant mitra for cost and management acoounting)
| Is This Answer Correct ? | 12 Yes | 7 No |
Answer / naveda
Working capital is used for the day to day business
activities of an organisation.
working capital= current asset - current Liability
Calculation of working capital ratio = Working
capital /Total assets
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / dinesh birare
WORKING CAPITAL IS USED IN DAY IN DAY BUSINESS OF AN
ORGANISATION.
WORKING CAPITAL=CURRENT ASSET-CURRENT LIABILITY.
CALCULATION OF WORKING CAPITAL=WOKING CAPTIAL/TOTAL ASSETS
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / jayant kumbhare
Definition:-Working Capital means the amount required for day to day business activities is known as Working Capital management.
Formula for Calculatin===>Current Assets - Current Liabilities
| Is This Answer Correct ? | 1 Yes | 1 No |
i was asked to journalise nominal accounts please give me the answer with examples so dat its easy for me 2 understand
plz send me hsbs finance questions asked in the interview ans appitude also
why should i hire you? what are your outside interest? what was your toughest decision you ever have to make?
Expand------------RST
purchases for rs100. vat @ 10% and cash discount rs 5 what is the entry passed
Expand STP?
shares & debentures ?
what is journal entries for cheque dishonored?
33 Answers ABC, Apple, Blue Dart, CARA, CMR, Nano Web Tech, Pallium India, Shriram Finance, Wipro, WNS,
what is the process of excise duty?
What is payment/receipt/period accruals?
Explain the difference between inactive account and dormant account?
What are the rates of Depreciation? Like machinery items, wooden items?
Audit 
