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Banking Exam Question - What is Working Capital? Types, Formula, Need & Importance of Working Capital in Banks.




Introduction - Working Capital
Working capital is a money related metric which speaks to working liquidity accessible to a business, association or other substance, including administrative element. Alongside settled resources, for example, plant and hardware, working capital is viewed as a piece of working capital. Net working capital is equivalent to current resources. Working capital is figured as present resources less present liabilities. On the off chance that present resources are not as much as present liabilities, an element has a working capital lack, likewise called a working capital deficiency. 

An organization can be enriched with resources and gainfulness however shy of liquidity if its advantages can't promptly be changed over into money. Positive working capital is required to guarantee that a firm can proceed with its operations and that it has adequate assets to fulfill both developing here and now obligation and up and coming operational costs. The administration of working capital includes overseeing inventories, records of sales and payable, and money.

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