CUET Preparation Today
| What do you call a capital which is needed to fund the normal, day to day operations? |
Fixed Capital Circulating Capital Long Term Capital Short Term capital |
| Circulating Capital |
| 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. |
