Don’t confuse short-term working capital needs and longer-term, permanent requirements; While it can be tempting to use a working capital line of credit to purchase machinery or real estate or to hire permanent employees, these expenditures call for different kinds of financing. Positive working capital is always a good thing because it means that the business is about to meet its short-term obligations and bills with its liquid assets. To understand the difference between capital employed and working capital, you should know their definition. Swered Tof 1.00 Select One: A. Besides investors' money, other equity items include stock repurchases and retained earnings -- also known as undistributed profits or accumulated revenues. Working capital is a metric used to measure a company's liquidity or its ability to generate cash to pay for its short term financial obligations. In finance, "working capital" means the same thing as . Finance Working Capital Quiz. a) total assets. A key part of financial modeling involves forecasting the balance sheet. Which of the following would be consistent with a more aggressive approach to financing working capital? c) current assets. current asset. b) fixed assets. Total Assets A B. Working capital can be far different for different companies, even those in the same industry. The amount of current assets that varies with seasonal requirements is referred to as _____ working capital. While both focus on obligations due within a year, thus exclude fixed assets/PP&E (which together make up total capital) they actually have two almost opposite meanings and implications. ... To financial analysts, "working capital" means the same thing as _____. Working capital formula and definition. d) current assets minus current liabilities. In finance, "working capital" means the same thing as. WC is the difference between a company’s current assets and its current liabilities. For instance, a business that relies heavily on seasonal sales might have far different working capital at the time of closing than it did when negotiations began or … It also means that the business should be able to finance some degree of growth without having to acquire … Question: 59 In Finance, "working Capital" Means The Same Thing As - Sword Tot 1.00 Select One: O A. What is WC? In a financial glossary, "financial market," "financial exchange," "capital market" and "securities exchange" mean the same thing. In view of the coronavirus pandemic, we are making LIVE CLASSES and VIDEO CLASSES completely FREE to prevent interruption in studies Working capital refers to a specific subset of balance sheet items. Current Assets O C. Current Assets Minus Current Liabilities O D. Fixed Assets 60 The Starts At The Time Production Begins And Ends With The Collection Of Cash From The Sale Of The Product. Financing some long-term needs with short-term funds. 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