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Q. What do you mean by Gross working capital?

Gross working capital: - Gross working capital demotes to firms investment in current assets. Current assets are the assets which are able to be converted into cash within an accounting year and include short-term securities, cash, debtors, bill receivables and stock. As-per to this concept working capital means Gross working Capital which is the total of all current assets of a business. It is able to be represented by the following equation:

Gross Working Capital = Total Current Assets

As-per to the Bonneville and Dewey: - 'Any acquirement of funds which increases the current assets increases working capital for they are one and the same'.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9575632

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