What are working capital and types of working capital?

1.	What are working capital and types of working capital?
Answer» It is the capital that is required by the company to FINANCE its current assets. Working capital REPRESENTS the FUNDS to finance regular OPERATIONS that include day-to-day businesses. Working capital makes it EASY to gauge the company’s operating liquidity. Types of working capital are: Value-Based Gross working capital Networking capital Time-Based Temporary working capital Permanent working capital

Answer»

It is the capital that is required by the company to FINANCE its current assets. Working capital REPRESENTS the FUNDS to finance regular OPERATIONS that include day-to-day businesses. Working capital makes it EASY to gauge the company’s operating liquidity.

Types of working capital are:

Value-Based
- Gross working capital
- Networking capital
Time-Based
- Temporary working capital
- Permanent working capital

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What are working capital and types of working capital?

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