Saniya Muskan posted an Question
June 19, 2023 • 20:52 pm 30 points
  • UGC NET
  • Commerce

|working capital (net) = current assets capital is known as net working capital which is a more realistic concept. that is the amount of current assets that rem

|Working Capital (Net) = Current Assets capital is known as Net Working Capital which is a more realistic concept. That is the amount of current assets that remain in a firm if all its current liabilities are paid. This cone There is another liabiliti On a pa Income assets, (xix) Bal Statement blocked employees benefits of (xviD) Rev Gross Working Capital = Total Current Assets = Long capital of a fim which is termed as Gross Working Capital. machine Se Is a cap is intended te (vi) Capital Closing Stock, Prepayments etc. represent current assets of firm. The whole of to supplier of Cv) Ceditor have to be mad must be reme (viii) Working Capital : In order to maintan e.g., Caplal, ery firm Bad Deb Donbtful concept of working capital. Working capital 1s the excess of current assets over in the fixed assets. debts + the current liabilities - the amount + term internal liabilities long term these current as sses m and sale. Similarly, Accounts Receivable generate when goods are sold on credit. Cash, Bank Deems are required goods purchased, etc. by a firm. On identical reason, inventories to provide he Iinik b or current assets. For example, cash is required either to pay for expenses to meet obligation

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  • Anju bala

    This statement is more realistic because after paying all current liabilities even than current assets are remained shown in Balance sheet then this is also known as net working capital because this shows that firm has still more short term funds for future short term liabilities. that's why this is more realistic concept.

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