Practicing Success
Practicing Success
CUET Preparation Today
| "Gross working capital " means which of the following? |
Current Capital Circulating Capital sum total of all current assets of the business. All of the above |
| All of the above |
| Gross working capital (also known as current capital or circulating capital) is the sum total of all current assets of the business. These include cash, inventory (raw materials, work in process, finished goods, spares etc) and accounts receivable (or trade debtors). Current assets comprise items that would get converted in to cash in the short-run, say, within the normal operating cycle (or cash conversion cycle) of the business. Current liabilities represent short-term source of funds and are expected to fall due or mature for payment in a short period, generally within a year. These typically consist of payables to vendors and service providers, employees, other short term borrowings and provisions. |
