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Working Capital – Interesting 10 Questions Quiz !

Working Capital

Working capital is very important for an organisation. It is called the blood of the organisation. As without proper blood circulation in the body, body is to face various diseases, similarly proper circulation of working capital is
vital for the proper and smooth functioning of an organisation. Seeing the importance of working capital management, it is very necessary for a corporate professional to know about management of different constituents of
working capital.

The capital which is required to finance current assets is called working capital. It is defined varyingly keeping in view the objectives and purposes. To businessmen, it comprises current assets of business whereas to the accountant/creditors/investment analysts it is understood as the difference of current assets minus current liabilities. Current assets comprise: cash, receivables, inventories, marketable securities held as short-term investment and other items near cash or equivalent to cash.

10 Questions Quiz

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