Component 2- Cashflow Flashcards
1
Q
Cash + working capital
A
Cash = most liquid of all business assets part of working capital
Working capital (circulating capital) = amount of money needed to pay for the day to day trading of a business
Business needs working capital to pay expenses + buy stock, working capital is the amount over left after all current debts have been paid
2
Q
Working capital consists of:
A
The relatively liquid assets of a business that can be turned into cash - ie cash, stock money owed from debtors who have purchased goods / services
Minus:
