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
- 12202 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 |
If income and expense both are equal then what it depicts
how is caluclation of over time (O.T)
Is commodities transaction tax a permissible business expenditure? Explain
why to ifferentiate between capital and revenue expenditure?
Expand-------DDT
Expand---------TSRM
Name the Errors Which the Trial balance cannot detect
a) what are the rate of employees & company's contribution for PF & ESIC? b) what is the ceiling in case of ESI deductions? c) what are the due dates for paying ESI/PF
What do u mean by Derivatives and its types?
Expand U L I P
One bill how calculate vat & Service tax
after payment of interest of a loan account by using credit note voucher in tally 9........don't anyone thinks that we have to adjust the cash account by passing cr entry on journal for interest payment...
Audit 
